Key facts
- The yen was steady ahead of the Bank of Japan's policy decision.
- The dollar weakened as a dip in US Treasury yields attracted safe-haven bids.
- Concerns over AI spending rekindled worries and pushed broader stock markets lower.
- The yield on the benchmark US 10-year Treasury note fell to its lowest in over a month.
- The Bank of Japan is expected to keep interest rates unchanged at 1.25%.
The yen held steady on Friday ahead of the Bank of Japan's policy decision, while the dollar weakened as a dip in US Treasury yields attracted safe-haven bids. Renewed worries about AI spending, sparked by Alphabet's results, pushed broader stock markets lower, making bonds more attractive. The Bank of Japan is widely expected to keep interest rates unchanged at 1.25%, though markets are pricing in an 80% chance of a December hike. The yen was around 157.815 per dollar, on track for a 0.2% monthly decline. The dollar index was a shade weaker at 101.77, set for a 0.3% monthly gain. The yield on the benchmark US 10-year Treasury note fell to its lowest in over a month at 4.8958%, and the 30-year bond yield dropped to 5.2623%.