The USD/JPY exchange rate remained stable around 159.05 yen during the early Asian session on Friday, according to FX Street. This steady movement comes amid growing speculation that the Bank of Japan may raise interest rates next month.
Despite recent weaker GDP data, expectations of a potential BoJ rate hike appear to be supporting the currency pair's resilience. FX Street noted that these opposing factors have balanced out market reactions so far.
As Japan’s economy shows signs of slower growth, investors are closely watching the BoJ’s policy direction, which could influence not only the yen but also broader market sentiment in FX and equities.