Yen Under Pressure as BOJ Holds Rates Amid U.S. Dollar Strength

The yen remains under pressure as the Bank of Japan maintains ultra-low interest rates. The U.S. dollar's strength, political uncertainties in Japan, and the potential for further BOJ rate hikes contribute to the yen's challenges. Economic data from China and the U.S. influence market sentiments.

The yen faced ongoing pressure Thursday as the Bank of Japan maintained its ultra-low interest rates, with the U.S. dollar stabilizing ahead of crucial jobs data and the upcoming U.S. presidential election.

This month's decline in the yen, spurred by robust U.S. Treasury yields, marks its steepest monthly loss against the dollar since November 2016, exacerbated by Japan's political upheaval that clouds fiscal and monetary future policies.

While analysts debate the likelihood of further rate hikes, BOJ Governor Kazuo Ueda's post-meeting statements are keenly awaited for insight. Concurrently, U.S. private payrolls showed strong growth, with the U.S. economy slightly underperforming expectations, adding to the market's complex calculus.

(With inputs from agencies.)