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

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.