Yen Under Pressure Amid Political Shakeup and BoJ's Rate Decisions

The yen struggled on Thursday amid expectations for the Bank of Japan to maintain low interest rates, while global markets await U.S. jobs data and elections. October has seen the yen fall over 6%, impacted by Japan's political changes. Analysts are split on future rate hikes.

The yen continued to face downward pressure on Thursday, with the Bank of Japan likely to maintain its ultra-low interest rate policy. Market participants are closely watching the U.S. jobs data and impending presidential election, which have kept the dollar strong against the yen.

This month, the yen has depreciated by more than 6% against the dollar, its steepest monthly decline since November 2016. Political turbulence in Japan has further complicated the yen's outlook, making fiscal and monetary policies less predictable.

While the Bank of Japan is expected to maintain its cautious stance, analysts remain divided on the prospect of rate hikes by year-end. The yen's depreciation continues to be a focal point for traders, who are concerned about potential interventions by Japanese authorities.

(With inputs from agencies.)