Bank of Japan Deputy Governor Ryozo Himino said underlying inflation is close to the central bank's 2% goal and warned that delaying policy changes could let price risks build and hurt the economy. The comments touch USD/JPY.
A Reuters survey finds most economists now expect Japan's central bank to raise its benchmark rate to 1.50% before year-end, but skip its late-October meeting. The timing carries implications for USD/JPY and Japanese bond yields.
Japanese exports climbed 16.7% from a year earlier in September, a 13th consecutive monthly gain but below the 20.1% rise economists had expected, according to Ministry of Finance data.
Four people familiar with the Bank of Japan's deliberations told Reuters the central bank will keep interest rates unchanged and modestly raise its inflation forecast at its October policy meeting.
A 20-year Japanese government bond sale drew its strongest demand in a month, helping the yen climb 0.2% to 158.15 per dollar, while the euro also edged up as unrest in France and Italy unsettled markets there.