The Japanese yen firmed to around 150.3 per dollar on Friday, nearing two-week highs after Bank of Japan Governor Kazuo Ueda signaled readiness to raise interest rates if confidence in the economic outlook continues to build. Ueda said he would evaluate upcoming data ahead of this month’s policy meeting, suggesting the BOJ has not ruled out a near-term move despite ongoing political uncertainty and risks from US tariffs. Still, markets see only a slim chance of a rate hike at the October meeting. Meanwhile investors remained focused on political developments as opposition parties have yet to agree on the ruling Liberal Democratic Party’s Oct. 21 proposal to hold a vote for a new prime minister. Externally, the yen drew additional support from safe-haven demand and a softer dollar amid escalating US-China trade tensions, the prolonged US government shutdown, and dovish signals from the Federal Reserve.
