Japanese Yen futures recorded their largest single-day percentage increase since August, finishing the week higher by 1.53%. This rally completely reversed losses from earlier in the week. Market volatility spiked following speculation that the Bank of Japan conducted a rate check, a move often viewed by traders as a precursor to direct intervention. While the central bank maintained its policy rate at 0.75%, the 8–1 decision included a notable dissent from Hajime Takata in favor of a hike to 1%. Additionally, the bank raised its growth and inflation forecasts, signaling a cautiously hawkish outlook. This divergence in policy comes as the market prepares for next week’s FOMC meeting, where the Federal Reserve is viewed as closer to a potential cut than a hike. A broader decline in the U.S. dollar provided further support for the currency as it reached its lowest aggregate point since October.
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