Yen headed for strongest week in a month, dollar flat ahead of payroll data
Traders now price a 75% chance of a quarter-point BOJ hike, while the yen’s rally has also been fueled by capital repatriation and unwinding carry trades.
- On Monday, the Japanese yen strengthened to 155.25 per dollar, set for a 2.5% weekly gain—its largest since late July—as traders ramped up bets on Bank of Japan interest-rate hikes.
- Breaking below levels seen after the July joint intervention by Japan and the U.S., this rally marks a shift from previous efforts that struggled to stabilize the currency near 40-year lows.
- Markets are "cautiously reassessing a more hawkish BOJ path," said Masahiko Loo, senior fixed income strategist at State Street Investment Management, as traders price a 75% chance of a rate hike on September 18.
- Japan's top currency diplomat Atsushi Mimura remained alert to exchange-rate moves on Friday, maintaining contact with U.S. authorities and keeping markets wary of potential further intervention.
- Focus shifts to U.S. inflation data ahead of the Federal Reserve's September meeting, as traders position for a durable policy shift into 2027 and gauge the central bank's next move.
68 Articles
68 Articles
Yen extends gains as traders eye rate hike, tech rallies again
The Japanese unit has enjoyed a much-needed rally over the past week amid expectations the central bank will speed up its pace of monetary tightening in the face of surging inflation. With some observers even predicting back-to-back hikes, the yen has climbed more than four percent against the greenback, with Monday's gains said to be helped by thin liquidity as US markets were closed for a holiday. A historic joint intervention by authorities i…
Japanese Yen extends rally, Oil prices climb higher
Here is what you need to know on Monday, September 7: The Japanese Yen (JPY) gathered strength against its major rivals on Monday and extended its rally during the Asian trading hours on Tuesday, reaching its highest level against the US Dollar (USD) since mid-February. The economic calendar will not feature any high-impact macroeconomic data […]
The value of the Japanese yen is surging, briefly reaching the 152 yen per dollar range on the 8th. This is interpreted as reflecting expectations regarding a hike in the Bank of Japan's base interest rate and changes in fiscal policy by the Japanese government under President Sanae Takaichi. On this day, the yen-dollar exchange rate in the international foreign exchange market is fluctuating in the high 152 yen range.
The value of the Japanese yen has surged due to coordinated efforts and market intervention by U.S. and Japanese authorities, raising the possibility of the unwinding of yen carry trades. As concerns grow about Japan withdrawing its investment assets from Korea amid changes in global capital flows, this is expected to impact supply and demand in the domestic stock market. U.S. economic indicators and Japan's monetary policy meeting are set to ac…
On the Tokyo foreign exchange market on the 8th, the yen strengthened against the dollar, briefly reaching the upper 152 yen range. This is the strongest yen and weakest dollar level since mid-February this year. Amid growing market expectations that the Bank of Japan will accelerate its pace of interest rate hikes, the dollar was sold, and interest rates are expected to rise…
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