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Yen Jumps on BOJ Hike Bets, Dollar Slips on Waller Comments
Markets are nearly fully pricing a BOJ rate hike this month after Hajime Takata urged nimble tightening to counter inflation.
- The yen extended gains on Thursday, reaching an intraday peak of 157.95 per dollar in Asia, with traders attributing the move to hawkish repricing of domestic rate expectations rather than official intervention.
- BOJ board member Hajime Takata said on Wednesday the central bank should conduct interest rate hikes nimbly to counter inflationary pressures, prompting markets to nearly fully price in a rate hike this month.
- Citi said in a client note the market is taking Takata's comments "more seriously," while strategist Kazumasa Ishii of UBS SuMi Trust Wealth Management said there is little incentive for the Japanese government to intervene.
- Reflecting the yen's strength, the dollar eased 0.14% to 99.46 against a basket of currencies, while Sterling rose from a three-week low to $1.3489.
- Analysts forecast a 56,000 job increase in Friday's Payrolls report, as Carol Kong of Commonwealth Bank in Australia noted markets expect the Fed to take action to bring inflation closer to target.
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Nobody was hedged: The dollar’s plunge will run for a while longer
The dollar sank to the lowest level since May on Thursday, September 3 after Federal Reserve Governor Christopher Waller noted progress on inflation and as the yen surged against its major counterparts. The Bloomberg Dollar Spot Index fell 0.6% on Thursday, dropping against all of its Group-of-10 peers. The yen led gains, climbing 2.1% versus the greenback, as traders boosted bets on Bank of Japan interest-rate hikes and remained on alert for si…
EVRIM KUCUK The Japanese yen has once again come under the radar of investors after a long period of devaluation. The Bank of Japan may accelerate interest rate hikes this year...
Coverage Details
Total News Sources22
Leaning Left0Leaning Right2Center3Last UpdatedBias Distribution60% Center
Bias Distribution
- 60% of the sources are Center
60% Center
C 60%
R 40%
Factuality
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