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06.11.202604:03:45UTC+00Yen Holds Gains on Strong Wage Data

The Japanese yen hovered around 157.8 per dollar on Friday after gaining for two consecutive sessions, as data showed nominal wages in Japan rising at their fastest pace in nearly three decades. The figures reinforced expectations that the Bank of Japan could deliver another interest rate hike in December. Minutes from the BOJ’s September meeting further indicated that policymakers may quicken the pace of monetary tightening as they assess the impact of developments in the Middle East, growing AI-related demand and foreign exchange fluctuations.

The BOJ raised its policy rate to a 31-year high of 1.25% in September, then kept it unchanged in October while signaling that underlying inflation had reached its 2% target. The yen also drew support from safe-haven flows amid a broadening global equity selloff, driven by fears of stricter regulation of the AI industry following a sweeping Democratic victory in the US midterm elections.

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