The Japanese Yen lost ground following the trade deficit data released on Wednesday.
A Reuters poll suggested that 31 out of 54 economists expect the BoJ to raise rates before the end of the year.
The recent FOMC Minutes suggested that most Fed officials agreed on a rate cut in September.
The Japanese Yen (JPY) edges lower against the US Dollar (USD) on Thursday. The USD/JPY pair gains ground as the JPY remains tepid following the record trade deficit report on Wednesday. Traders are anticipating Bank of Japan (BoJ) Governor Kazuo Ueda's appearance in parliament on Friday, where he will discuss the central bank's decision last month to raise interest rates.
A Reuters poll conducted from August 13-19, published on Wednesday, indicated that 31 out of 54 economists expect the Bank of Japan to raise borrowing costs before the end of the year. The median forecast points to a 25 basis point hike, which would bring the end-of-year rate to 0.50%.
The US Dollar (USD) edged higher on Thursday, supported by a slight recovery in Treasury yields. However, the Greenback's upside may be limited, as the Federal Reserve is expected to implement 100 basis points (bps) in rate cuts in 2024. Market analysts remain divided on whether the Fed will opt for a 25 or 50 bps cut at its September meeting.
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