Japanese Yen: Rate spread outlook favors JPY against US Dollar – BBH
Brown Brothers Harriman’s (BBH) Elias Haddad notes that JPY is underperforming as firmer Oil prices support USD/JPY, while the Bank of Japan's (BoJ) latest meeting minutes did little to shift rate expectations.
Brown Brothers Harriman’s (BBH) analyst Elias Haddad predicts that the Japanese Yen (JPY) may face a disadvantage against the US Dollar (USD) due to the latter’s current strength. Haddad attributes this to the upward trend in oil prices, which has bolstered the USD/JPY exchange rate. Despite the Bank of Japan’s (BoJ) latest meeting minutes offering no significant shift in expectations regarding rate hikes, Haddad points out that the US-Japan interest rate differentials could narrow in the future. This narrowing could imply a potential decline in the value of USD/JPY over the coming months.
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