Yen headed for strongest week in a month, dollar flat ahead of payroll data
Traders raised the odds of a BOJ hike to 75% as the yen gained 2.5% this week, its biggest weekly rise since late July, analysts said.
- On Monday, the Japanese yen surged to a seven-month high of 154.05 against the U.S. dollar, breaking below the 155 level and reinforcing traders' bullish views on the currency.
- Mounting expectations for faster Bank of Japan tightening fueled the currency's 2.5% weekly gain, its biggest since late July, as investors unwound yen-funded carry trades that previously weighed on the exchange rate.
- "Markets are finally starting to buy into the idea that Japan may continue normalising policy into 2027," said Masahiko Loo, senior fixed income strategist at State Street Investment Management in Tokyo.
- Japan's top currency diplomat Atsushi Mimura said on Friday he remained alert to exchange-rate moves and was in constant contact with U.S. authorities, keeping markets alert to potential intervention.
- Investors are pricing a 75 per cent chance the Bank of Japan will raise rates a quarter point at its September 18 meeting, positioning traders for a more aggressive tightening cycle ahead.
65 Articles
65 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…
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…
Yen Rises to Strongest Since May, Topping Intervention Rally
Business Times
MoneycontrolYen hits seven-month high; dollar soft ahead of US inflation
[SINGAPORE/LONDON] The yen surged to a seven-month high on Monday (Sep 7), as traders appeared to reassess their outlook on the embattled currency, thanks to a combination of factors including bets on faster Bank of Japan tightening and expectations that Japanese investors may shift funds home. Read more at The Business Times.
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