Ella 
The yen continued to weaken on Wednesday, affected by the overall market downturn triggered by risk aversion. In addition, Bank of Japan (BoJ) board member Seiji Adachi stuck to his dovish stance in a speech, which could lead to a fall in the yen and support the rise in USD/JPY.
Adachi stressed the potential consequences of frequent changes in monetary policy to stabilize foreign exchange trends, and warned that large fluctuations in interest rates could disrupt household and corporate investment. Adachi also stressed that the Bank of Japan is not yet convinced that it can achieve its price target on a sustained basis, so it is necessary to maintain accommodative conditions.
The dollar rebounded after Minneapolis Federal Reserve Bank President Neel Kashkari hinted at a possible rate hike. “I believe that no one has completely ruled out the possibility of a rate hike,” Kashkari said, expressing doubts about the deflationary trend and expecting only two rate cuts.
The Federal Reserve’s Beige Book, which outlines the current economic situation in the United States based on interviews with key business contacts, economists, market experts and other sources in 12 Federal Reserve districts, will be released on Wednesday.
