USD/JPY rebounds from post-Fed dip, hovers near 163.60
The dollar recovered against the yen after an initial bout of weakness following the Federal Reserve's decision to keep rates steady while signaling a hawkish stance.
The Federal Reserve held interest rates unchanged on Wednesday but struck a generally hawkish tone in its policy statement, prompting a brief sell-off in USD/JPY. The pair initially fell as investors reacted to the central bank's forward guidance.
However, the decline proved short-lived. USD/JPY rebounded from its immediate post-announcement lows and was last trading near 163.60. The recovery suggests that market participants are reassessing the implications of the Fed's stance, balancing the hawkish language against the decision to pause.
At current levels, the pair remains sensitive to further hints on the Fed's rate path and upcoming Japanese economic data.
Source: FXStreet Forex News