The yen strengthened to ¥157.32-34 per dollar by 3 p.m. in Tokyo on the 22nd, from ¥158.13-15 in late New York trading the previous day, extending recent yen gains and dollar weakness. Investor sentiment deteriorated as markets awaited next week’s Bank of Japan policy meeting. The BOJ is widely expected to leave interest rates unchanged before potentially raising them in December, while Deputy Governor Ryozo Himino said underlying inflation was approaching the central bank’s 2% target. Governor Kazuo Ueda has also made hawkish remarks. Japan’s relatively low interest rates continue to support carry trades and leave the yen sensitive to the gap with rates in other major economies, although gradual BOJ tightening has offered limited support.