In a report in Japanese media the Nikkei compares the yen to a volcano.
This ahead of the Bank of Japan monetary policy meeting this week (the statement is due on Tuesday, 31 October 2023, Japan time).
The central market focus for the meeting is any change to the Bank of Japan's yield curve control framework, where the Bank has capped 10-year government bond yields at 1%.
- BofA & UBS are forecasting 10-year yield cap to be raised to 1.5%
- Nomura, Morgan Stanley and Goldman Sachs expect no change
- BNP Paribasasses the odds for a change at a coin-toss: 50-50
The minus 0.1% target on short-term rates is widely expected to remain unchanged.