The yen weakened to around 147.5 per dollar on Thursday, snapping a two-day rebound as uncertainty over the Bank of Japan’s policy outlook persisted.
Pressure has been building on the BOJ to raise rates as inflation stays elevated and wages continue to lag behind price growth.
At its July meeting, the central bank raised its inflation forecast and left the door open to a possible hike by year-end.
Still, Governor Kazuo Ueda has remained cautious, emphasizing that “underlying inflation” is yet to firmly reach the 2% target.
On the data front, Japan’s manufacturing sector edged closer to stability in August while services growth slowed.
Externally, investors awaited the Federal Reserve’s Jackson Hole symposium for signals on the global rate outlook.
AloJapan.com