• The Japanese Yen extends its losses as the BoJ Summary of Opinions indicates no immediate plans for further rate hikes.
• Japan’s Tankan Large Manufacturing Index remained steady at 13 points in Q3, as expected.
• Fed Chair Powell said that upcoming rate changes are likely to be more modest.

The Japanese Yen (JPY) continues to lose ground for the second successive day following the release of the Bank of Japan's (BoJ) Summary of Opinions from September’s Monetary Policy Meeting, along with mixed economic data on Tuesday.

The summary indicates no immediate plans for additional rate hikes, stressing a focus on stability and cautious communication. The BoJ intends to maintain its accommodative stance but remains open to adjustments if economic conditions show significant improvement.

Japan’s Tankan Large Manufacturing Index showed that overall business conditions for large manufacturing companies remained steady at 13 points in the third quarter, in line with expectations. Additionally, Japan's Unemployment Rate fell to 2.5% in August, down from 2.7% in July, which was better than market forecasts of 2.6%.

Additionally, the dovish comments from Japan's upcoming Prime Minister, former Defense Chief Shigeru Ishiba, are putting downward pressure on the JPY and underpinning the USD/JPY pair. Ishiba stated on Sunday that the country's monetary policy should continue to be accommodative, indicating the necessity of maintaining low borrowing costs to support a fragile economic recovery, The Japan Times.