According to FXStreet, on November 1, the USD/JPY pair decreased slightly, trading at around 151.95. The Japanese Yen (JPY) increased in value when Bank of Japan (BoJ) Governor Kazuo Ueda hinted that the BoJ may raise interest rates in December.
The BoJ kept its short-term interest rate unchanged at 0.25% at its meeting on Thursday, and forecast inflation to remain around its 2% target for the time being. Governor Ueda said wage and price data were developing in line with the bank's forecasts. The less dovish comments from the BoJ helped support the yen in the short term.
However, Japan's manufacturing PMI data released showed manufacturing activity continued to decline in October - putting the yen at a disadvantage.
Japan's manufacturing PMI showed manufacturing output and new orders continued to decline. Japan's chief cabinet secretary said he expected the BoJ to work closely with the government to achieve its inflation target on a sustainable basis.
Overall, after BoJ Governor Ueda mentioned the possibility of a rate hike, the JPY recovered somewhat.
Investors are now awaiting Friday's US nonfarm payrolls report. The US economy is expected to have added 113,000 jobs in October and the unemployment rate remained at 4.1%. A weaker-than-expected result could prompt the Fed to maintain a more dovish monetary policy, putting pressure on the US dollar.
Meanwhile, the US dollar rose after a four-day losing streak, helped by market caution ahead of the US presidential election. However, the greenback came under pressure after core inflation data (PCE index) showed prices rose more slowly than expected. In addition, jobless claims fell to a five-month low, signaling that the labour market remains strong.
According to Lao Dong, at 1:00 p.m. on November 1, the USD/JPY exchange rate is currently fluctuating between 151.79-152.54 JPY/USD.
See more news about Yen exchange rates HERE.
