The Japanese Yen weakened across the board as BoJ's Uchida said that "underlying inflation is likely to stagnate for some period before re-accelerating gradually as inflation expectations heighten". This is a dovish comment and suggests that Uchida is in no rush to hike rates at the moment.
Traders were starting to bet more on an October rate hike recently after the two dissenting votes at the last meeting and the benign Tankan survey which increased the probabilities to 60%. Those probabilities are now being pared back with the pricing showing 63% chance of interest rates being held steady.
In the bigger picture it doesn't change much given that a rate hike is still expected, we just don't know when...
