Japanese Yen Struggles Amid Central Bank Policies

The Japanese yen faces a monthly downturn against the US dollar following the Bank of Japan's reluctance to adopt a more aggressive interest rate policy. Traders, who anticipated a shift towards a hawkish stance, were left disappointed.

Meanwhile, the US Federal Reserve lowered expectations for a December rate cut. The yen saw some improvement after Japanese Finance Minister Satsuki Katayama signaled close monitoring of foreign exchange rates. Core inflation in Tokyo rose, surpassing the central bank’s target.

Globally, the dollar remains strong amid positive economic sentiments despite a weakening labor market. The Bank of England and the European Central Bank maintained steady policies, with market players speculating on potential rate adjustments in the coming months.