Japanese Yen falls as the BoJ’s Summary of Opinions reveals its desire to maintain an accommodative monetary policy.

On Wednesday, the Japanese yen (JPY) fell against the US dollar (USD) after the Bank of Japan (BoJ) raised doubts about additional interest rate hikes. On Tuesday, the Bank of Japan’s Summary of Opinions from the September Monetary Policy Meeting indicated that there are no immediate plans for future rate hikes. The Central Bank plans to retain its accommodative approach, but is open to changes if economic conditions improve significantly.

Japan’s Economy Minister Akazawa stated that Prime Minister Ishiba expects the Bank of Japan to conduct economic evaluations before raising interest rates further.

Japan’s Economic Revitalization Minister, Ryosei Akazawa, remarked on Wednesday that Prime Minister Shigeru Ishiba expects the Bank of Japan to perform extensive economic reviews before raising interest rates again. In his maiden press conference as economy minister, Akazawa highlighted, “Our top priority is to ensure that Japan fully exits deflation,” adding, “it will take some time to achieve a complete exit,” according to Reuters.

US dollar gains strength as traders remain cautious despite escalating geopolitical concerns in the Middle East.

The US Dollar supported by the market’s cautious tone as tensions in the Middle East escalate. However, the weaker-than-expected ISM Manufacturing PMI for September may have put negative pressure on the greenback. Traders will now focus on See the upcoming US ADP Employment Change and Fedspeak for more information.

Daily Market Movers: Japanese Yen depreciates due to dwindling chances of BoJ rate rises.

According to the CME FedWatch Tool, markets expect the Federal Reserve will decrease interest rates by 25 basis points in November, while the likelihood of a 50-basis-point cut has dropped to 36.9% from 58.2% a week ago.

Iran launched more than 200 ballistic missiles at Israel, prompting Prime Minister Benjamin Netanyahu to pledge revenge for the Tuesday strike. In reaction, Iran warned that any counterstrike would result in “vast destruction,” raising concerns about a larger battle.

US ISM Manufacturing PMI came in at 47.2 for September, maintaining the level from August, but coming in below the Market expectation is 47.5.

Japan’s Tankan Large Manufacturing Index revealed that overall business conditions for large manufacturing enterprises remained stable at 13 points in the third quarter, as expected. Furthermore, Japan’s unemployment rate fell to 2.5% in August, from 2.7% in July, above market expectations of 2.6%, according to statistics released on Tuesday.

Federal Reserve (Fed) Chairman Jerome Powell stated on Monday that the central bank is not in a hurry to cut its benchmark rate and will do so ‘over time.

Federal Reserve (Fed) Chairman Jerome Powell stated on Monday that the central bank is not in a hurry to cut its benchmark rate and will do so ‘over time.’ Fed Chair Powell also stated that the recent 50 basis point interest rate drop should not be seen as a harbinger of similarly aggressive future measures, saying that next rate changes are expected to be more modest.

Shigeru Ishiba, Japan’s recently elected prime minister indicated that the country’s monetary policy should remain supportive, emphasizing the importance of maintaining low borrowing costs to sustain the weak economic recovery. This has put pressure on the Japanese yen, supporting the USD/JPY pair.

According to the Financial Times, St. Louis Federal Reserve President Alberto Musalem said on Friday that the Fed should start decreasing interest rates “gradually” after a larger-than-usual half-point cut at the September meeting. Musalem acknowledged the potential of the economy weakening more than expected, adding, “If that were the case, then a faster pace of rate reductions might be appropriate.”

Last Thursday, the BoJ Monetary Policy Meeting Minutes emphasized members’ agreement on the significance of being watchful against the dangers of inflation surpassing goals. Several members. said that hiking rates to 0.25% would be an appropriate strategy to modify the level of monetary stimulus. A few others indicated that a moderate change in monetary support would be suitable.