USD/JPY, AUD/USD, USD/INR in Focus as BoJ Rate Hike Bets Rise

Asia-Pacific markets are navigating a complex landscape with multiple currency-moving developments. The Japanese yen is drawing attention as sources suggest the Bank of Japan could raise rates again at its September 17-18 meeting, potentially strengthening JPY against major counterparts. USD/INR faces upward pressure as the Indian rupee is set to open weaker amid rising oil prices, though Reserve Bank of India intervention may cap losses. AUD/USD traders are digesting mixed Australian business data, with conditions edging higher in July but confidence remaining fragile, limiting upside potential. The New Zealand dollar faces political uncertainty as PM Luxon calls an urgent caucus meeting to address leadership speculation, adding downside risk to NZD pairs. Singapore's doubling of its 2026 growth outlook to 4.5-5.5%, driven by a tech cycle upgrade, provides a bullish backdrop for SGD. Meanwhile, the PBOC setting seven-day reverse repo volume at zero signals tightening liquidity conditions in China, potentially weighing on risk-sensitive currencies. Oil and gold remaining near highs add further complexity to commodity-linked forex positioning.