FILE PHOTO: Passersby walk past an electric monitor displaying the Japanese yen exchange rate against the U.S. dollar outside a brokerage in Tokyo, Japan October 4, 2023. REUTERS/Issei Kato/File PhotoSINGAPORE : Asian equities eased on Tuesday, while the yen remained close to a two-week high as traders braced for the Bank of Japan's policy decision when it is likely to lift its inflation forecasts and ponder tweaks to its bond yield control.
"That said, the way foreign currency markets are behaving suggests any move today on YCC may only cap but not reverse the yen weakness," Chia said. Overnight, all three major U.S. stock indexes closed up more than 1 per cent, with interest rate sensitive megacap stocks providing the most upside muscle.
On Tuesday, the Federal Open Markets Committee will convene for a two-day monetary policy meeting, which is expected to culminate in a decision to let the Fed funds target rate stand at 5.25 per cent-5.50 per cent. "While the Federal Reserve may not make any rate adjustments this week, the possibility of a rate hike in the following meeting is certainly on the table."