Yen Struggles Amid Bank of Japan Decision and Political Uncertainty

The yen experienced volatility but eventually firmed after the Bank of Japan kept interest rates unchanged. The decision comes amidst a political shake-up in Japan, adding to uncertainty about fiscal and monetary policies. Market analysts are focused on upcoming U.S. jobs data and the presidential election.

The yen traded within tight margins after the Bank of Japan decided to maintain ultra-low interest rates. Meanwhile, the U.S. dollar remained stable as traders anticipated vital jobs data and the impending presidential election.

Political changes in Japan have compounded the yen's issues, causing trepidation about fiscal policy. The Bank of Japan, however, remained steady, emphasizing a thorough evaluation of global economic trends and risks to Japan's fragile recovery.

Analysts continue to debate the likelihood of further rate hikes by year-end. Attention shifts to BOJ Governor Kazuo Ueda's post-decision comments for insight on the pace of potential hikes.

(With inputs from agencies.)