Yen exchange rate today
According to Lao Dong, on September 22, the USD/JPY currency pair remained stable around 148.00. The market is waiting for further comments from US Federal Reserve (Fed) officials for more signals on monetary policy.
Last week, the Fed cut interest rates as analysts expected. However, the US central bank said it is in no rush to cut interest rates aggressively in the near future. The interest rate forecast chart released at the September meeting shows that the Fed is expected to make two more cuts this year.
This means that the Fed will continue to maintain a cautious stance, not as dovish as the market is waiting for. Some experts say this move could help the USD maintain its strength in the short term.
The possibility of the BoJ raising interest rates is within reach
On the other hand, the Bank of Japan (BoJ) continued to keep the short-term interest rate unchanged at 0.5% at its most recent meeting. This decision was as predicted, but it is noteworthy that two council members voted in favor of raising interest rates, instead of the absolute consensus as before.
According to FXStreet, this unexpected division has caused the market to worry that the BoJ may soon change its stance and raise interest rates in October. Currently, the market is pricing in a 75% chance that the BoJ will raise interest rates by another 25 basis points at the next session.
The combination of the Fed's slow interest rate cut and the possibility of the BoJ tightening policy soon has created a balance for the USD/JPY exchange rate in recent days. Investors continue to closely monitor signals from the Fed and BoJ to predict the next trend of this pair.
