Yen eases on risk-on mood ahead of central bank bonanza
TLT•The yen weakened 0.1% to 157.66 per dollar as investors awaited central bank decisions, while the dollar index held near a two-week high at 102.11.
1. Yen slips before BOJ decision
The yen eased against the dollar on Tuesday as risk appetite improved and investors focused on central bank meetings this week. The Bank of Japan is expected to keep its 1.25% rate unchanged at a meeting ending Friday, while signaling it remains ready to raise borrowing costs. Japan’s service-sector inflation gauge rose 3.7% year over year in September.
2. Dollar firms as risk appetite returns
The dollar index held near a two-week high at 102.11, supported by a tech-led rebound and a weaker euro. The euro fell to $1.1171, down about 1.4% this month, as concerns about France’s fiscal health weighed on the currency.
3. Other central banks in focus
The Federal Reserve is seen holding rates at its meeting ending Wednesday, and the European Central Bank is expected to keep rates at 2.5% on Thursday. New Zealand’s and Canada’s central banks are expected to raise rates this week; the New Zealand dollar rose 0.4% to $0.5702.
