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FOREX-Yen holds ground as BOJ leaves rates steady
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FOREX-Yen holds ground as BOJ leaves rates steady
Oct 30, 2024 11:55 PM

(Updates with prices as of 0608 GMT)

By Brigid Riley

TOKYO, Oct 31 (Reuters) - The yen traded in a narrow

range on Thursday after the Bank of Japan left ultra-low

interest rates unchanged, while the U.S. dollar consolidated

ahead of jobs data later this week and the U.S. presidential

election next week.

The Japanese currency has taken a beating, down around 6%

for the month as the dollar and U.S. Treasury yields have

hovered around their highest since July.

Japan's political shake-up has only added to the yen's woes,

heightening uncertainty about the country's fiscal and monetary

policy outlook.

The BOJ stood pat on Thursday, as expected, and signalled

the need to scrutinise global economic developments,

highlighting its focus on risks to a fragile domestic recovery

in deciding when to next tighten policy.

Traders had been concerned that the BOJ could delay rate

hikes after the Japanese election upset, but there was "no such

message" in the central bank's statement, helping the yen firm

marginally, said Masafumi Yamamoto, chief currency strategist at

Mizuho Securities in Tokyo.

The yen fluctuated before gaining after the BOJ's

decision. It was last up 0.38% at 152.83, keeping close to 153

per dollar.

Analysts are divided over the prospect of additional

interest rate hikes by year-end, putting the focus on BOJ

Governor Kazuo Ueda's post-meeting briefing for clues on the

pace and timing of further increases.

JOBS, ELECTION IN FOCUS

The dollar held steady ahead of the U.S. Personal

Consumption Expenditures (PCE) Price Index for September on

Thursday and the closely-watched nonfarm payrolls report on

Friday.

Economists polled by Reuters estimate 113,000 jobs were

added in October, although the number could be lower due to

recent hurricanes.

But the jobs report may find itself overshadowed in the

run-up to the presidential election on Tuesday.

"A slightly hotter or slightly cooler (jobs) number to me

probably doesn't change the dial too much" given the upbeat

trend in recent economic data, said IG Market Analyst Tony

Sycamore.

"It makes sense to me to be ... taking some risk off and

moving to the sidelines" ahead of a week that will "set the tone

for the end of the year," he said.

Some investors have been putting on trades betting

Republican candidate Donald Trump will win, helping to lift the

greenback and U.S. Treasury yields, although he is still neck

and neck with Vice President Kamala Harris in several polls.

The dollar index, which measures the currency against

six major rivals, was flat at 104.1. It is set for its biggest

monthly gains against peers since April 2022.

The euro edged down 0.03% to $1.0852 after rising

as high as $1.0871 on Wednesday.

Sterling stood at $1.2956, down 0.04% so far on the

day.

Elsewhere, the Australian dollar slid 0.05% to

$0.65749 after domestic retail sales numbers for September

missed estimates, inching up just 0.1%. Analysts had looked for

a gain of 0.3% in September.

The New Zealand dollar ticked up 0.1% to $0.5978.

Markets also got economic data from China on Thursday, with

the National Statistics Bureau's manufacturing PMI showing

activity in October expanded for the first time in six months.

The offshore yuan held steady to trade at 7.1293.

In cryptocurrencies, leading token bitcoin last

fetched about $72,246, after pushing as high as $73,609.88 on

Tuesday.

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