The Japanese yen held around 155.5 per dollar on Wednesday, pausing a recent decline as investors assessed the Bank of Japan’s policy outlook following a high-profile meeting between Governor Kazuo Ueda and Prime Minister Sanae Takaichi.

The meeting, which took place on Tuesday, provided Governor Ueda with a platform to reiterate the central bank's current stance. He told the Prime Minister that the BOJ is "gradually raising interest rates to steer inflation toward its 2% target while supporting sustainable economic growth." Following the discussion, Ueda clarified to reporters that the prime minister made no specific requests regarding monetary policy, a detail that helps preserve the central bank's perceived independence.

Despite this reassurance, market views remain divided on whether the BOJ will proceed with another rate hike in December, given the backdrop of mixed economic signals. Supporting the case for policy normalization, data showed Japan’s machinery orders rose more than expected in September, pointing to robust capital spending by businesses.

Nevertheless, the yen continues to trade close to ten-month lows. This persistent weakness is largely attributed to market expectations of large-scale fiscal spending under the new Takaichi administration, which could counter the BOJ's tighter monetary policy and keep the currency under pressure.