Yen hits two-month low against dolllar

Dollar tilted higher against yen in Asian trade to July 19 highs before trimming some gains, following Bank of Japan's meeting minutes, and ahead of the Federal Reserve's policy meeting. 

As of 06:16 GMT, USD/JPY rose 0.08% to 112.89, with a two-month high at 112.98. and a session low at 112.76. 

Japanese Prime Minister Shinzo Abe said in earlier remarks that trade talks with US President Donald Trump in New York were constructive, noting their agreement also on the nuclear-free Korean peninsula principle. 

Bank of Japan released the minutes of its September 19 meeting, at which policymakers kept interest rates unchanged at minus 0.10% while carrying on the quantitative and qualitative easing programs. 

The most notable part of the minutes was the calls from several members to focus on the negatives of easing policies on the economy, which could lead to policy changes down the line. 

Investors await US housing data, with the S&P House Price Index expected with a 6.2% growth rate in July, slightly below 6.3% in June, while an index tracking consumer confidence is estimated at 132.2, compared to 133.4 in August.  

Markets also look forward to the Federal Open Market Committee's September 25-26 policy meeting in Washington, with analysts betting on another 0.25% rate hike to just below 2.25%.