Investors await Wednesday’s Federal Reserve and Bank of Japan decisions, keeping the yen steady and the dollar slightly higher.
The USD/JPY pair traded at 163.90 on Tuesday, up 0.11% as markets awaited key monetary policy announcements. The Federal Reserve and Bank of Japan are both expected to hold rates steady, though investor caution limited volatility.
Prior sessions saw the yen range-bound, with traders pricing in a hawkish Fed stance amid persistent inflation concerns. The BoJ’s policy shift in March had minimal lasting impact, leaving USD/JPY near multi-decade highs.
Market reaction remained muted, with thin trading ahead of the central bank decisions.