Ella 
The yen continued to weaken on Wednesday, affected by the general market downturn driven by risk aversion. In addition, Bank of Japan (BoJ) board member Seiji Adachi maintained his dovish stance in a speech, which may lead to a decline in the yen and support the USD/JPY currency pair.
The BoJ’s Adachi stressed the potential consequences of frequent adjustments in monetary policy to stabilize exchange rate trends, warning that large fluctuations in interest rates could disrupt household and corporate investment. Adachi also stressed that the BoJ is not yet convinced that its price target can be achieved 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 don’t think anyone has completely ruled out the possibility of a rate hike,” Kashkari said. He expressed doubts about the deflationary trend and expected only two rate cuts.
The Federal Reserve’s Beige Book will be released on Wednesday, outlining the current US economic situation based on interviews with key business contacts, economists, market experts and other sources in the 12 Federal Reserve districts.
