Japanese Yen holds near 156 despite quake and weak GDP

The Japanese yen steadied around 156.05 per dollar on Tuesday after slipping overnight, as markets absorbed the impact of a magnitude-7.5 earthquake in Japans northeast that initially raised worries about economic disruption. A downward revision to Q3 GDP added extra pressure on the currency and boosted support for Prime Minister Sanae Takaichis expanded spending plans. With the Bank of Japan expected to raise rates this month as part of its slow normalization path, investors are now focused on Governor Kazuo Uedas speech in London later today for clearer policy cues. Meanwhile, the dollar index hovered near 99, staying range-bound as traders prepared for the US Federal Reserves meeting, where a 25-basis-point rate cut is widely expected even as expectations for deeper 2026 easing have moderated.

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