The yen held steady as markets anticipated the Bank of Japan’s (BOJ) upcoming decision, with investors watching closely for any shifts in its ultra-loose monetary stance. Speculation over potential adjustments to the central bank’s yield curve control policy has kept traders cautious, particularly as the BOJ remains one of the few central banks committed to maintaining dovish policies. The decision is seen as a critical test for Governor Kazuo Ueda, with any surprises likely to spur volatility in currency markets.
Meanwhile, the dollar faced a challenging week, on track for a weekly loss as concerns over slowing U.S. growth and dovish Federal Reserve signals weighed on sentiment. With mixed economic data and softer Treasury yields, the greenback has struggled to maintain its momentum against major peers. The focus now shifts to upcoming U.S. GDP figures, which could further shape expectations for the Fed’s path in 2024.
