The yen edged higher on Wednesday as USD/JPY fell from a two-week high of 158.51
to around 158 after Bank of Japan official Ayano Sato unexpectedly signaled
support for further policy tightening. Sato, previously viewed as dovish and one
of two dissenters in September’s rate vote, said she backs the BOJ’s “gradual
adjustment” of policy and that raising rates “helps achieve sustainable economic
growth.” Gains were capped as the dollar remained broadly strong ahead of the
Fed’s policy decision and rising oil prices weighed on Japan as an energy
importer.
