The Japanese yen traded near 157 per dollar on Wednesday after a sharp three-day decline, even as Bank of Japan Governor Kazuo Ueda said the central bank is getting closer to attaining its inflation target, hinting at a potential near-term rate hike. Markets are pricing in a possible BOJ rate increase next week, with attention focused on Ueda’s post-meeting comments for guidance on policy plans next year. The currency also faced pressure from growing concerns over Japan’s fiscal health amid Prime Minister Sanae Takaichi’s expansive spending plans. Additionally, wide interest rate differentials between Japan and other major economies encouraged bearish bets, as domestic rates remain among the lowest globally. The yen weakened across the board, sinking to record lows against the euro.
