Yen slips ahead of central bank bonanza, dollar firms on tech rebound
TLT•The yen weakened 0.16% to 157.73 per dollar as investors awaited central bank decisions, while the dollar index held near a one-week high at 102.04. The euro fell to $1.1165 amid concerns about France’s fiscal health.
1. Yen eases before BOJ meeting
The yen weakened on Tuesday, extending losses from Monday and moving further from last week’s one-month high, as investors looked ahead to the Bank of Japan’s policy decision later this week. The BOJ is expected to hold its policy rate at 1.25%; markets price slightly better-than-even odds of a rate hike in December. Japan’s service-sector inflation gauge rose 3.7% year over year in September.
2. Dollar supported by risk appetite
The dollar index held near a one-week high at 102.04 as a tech-led Wall Street rebound revived risk appetite. The euro fell to a near two-week low of $1.1165, with French bond-market stress and concerns about the country’s fiscal health weighing on the currency. The Federal Reserve and European Central Bank are also expected to announce policy decisions this week.
