Japanese Yen flatlines ahead of Fed rate decicion
The USD/JPY pair holds steady near 155.25 during the early Asian session on Wednesday. Traders prefer to wait on the sidelines ahead of the US Federal Reserve (Fed) interest rate decision later on Wednesday. On Friday, attention will shift to the Bank of Japan (BoJ) interest rate decision. Fridays US inflation report showed that prices remain stubbornly high and core inflation, which excludes volatile food and energy, picked up in August from the previous month. Hotter US inflation data released last week bolstered expectations that the Fed would raise interest rates. The US central bank is widely expected to lift its short-term interest rate by Wednesday for the first time in three years to fight stubbornly high inflation. Traders will closely monitor Fed Chairman Kevin Warshs press conference after the rate decision, as it may offer hints about the US interest rate outlook. Hawkish remarks from Fed policymakers could lift the USD against the JPY in the near term. The BoJ is likely to raise its key policy interest rate by a quarter point to 1.25% from 1.00% at its September meeting on Friday. This would bring the highest borrowing costs for Japan since April 1995. Traders will keep an eye on BoJ









