Yen weakens after BOJ holds rates steady, Fed boosts dollar

Group 1 - The Japanese yen declined against the U.S. dollar after the Bank of Japan maintained interest rates and signaled a potential rate hike depending on wage outlook [1][2] - The Federal Reserve Chair Jerome Powell indicated that a rate cut in December is not guaranteed, contributing to the dollar's strength [1][3] - Fed funds futures traders adjusted their expectations, now pricing in 71% odds of a rate cut in December, down from 85% prior to Powell's comments [5] Group 2 - The Bank of Japan's decision to keep rates steady disappointed yen bulls, as there was little indication of a timeline for future rate hikes [2] - The dollar index increased by 0.35% to 99.49, reaching its highest level since August 1, while the dollar strengthened 0.98% against the yen to 154.21, the highest since February 13 [5] - The European Central Bank also kept interest rates unchanged at 2% for the third consecutive meeting, with no hints about future moves, leading to a decline in the euro [6]