BOJ Steals Spotlight in Global Markets Amid Yen Turbulence

The Bank of Japan (BOJ) maintained its interest rates, but its brief statement highlighted the impact of yen movements on inflation. The market remains attentive to further cues, particularly from BOJ Governor Ueda. Upcoming global events and economic data continue to shape market sentiment.

The Bank of Japan (BOJ) chose to keep its interest rates unchanged, concluding a week of central bank decisions. However, their brief statement brought the yen's role in inflation into focus, suggesting that a weaker currency could exacerbate inflation more than previously.

The BOJ's remarks nudged the yen slightly higher to 142.30 per dollar, although it remained significantly lower for the week. EURJPY increased by 1.7%, and the Australian dollar rose by 2.6%, indicating a potential revival of carry trades.

Attention now shifts to BOJ Governor Ueda's upcoming press conference, where insights into future tightening measures, particularly the possibility of an October rate hike, are expected. Meanwhile, the Nikkei climbed 1.9%, influenced by Wall Street's overnight rally and steady U.S. economic indicators.

China's central bank's surprise decision not to cut its prime rates also played a role in market activities, impacting the yuan. Overall, key economic data from the UK, Canada, Germany, and the EU, alongside speeches from major financial figures, have the potential to significantly affect global markets on Friday.

(With inputs from agencies.)