Japanese Yen: Fed hawkishness offsets BoJ talk – ING
ING’s Chris Turner notes that USD/JPY is slightly lower after BoJ hawk Hajime Takata signalled the possibility of a 50bp September hike or back-to-back moves.
The USD/JPY exchange rate is currently slightly lower following remarks from Bank of Japan (BoJ) hawk Hajime Takata, who suggested a potential 50 basis points (bp) hike in September or consecutive hikes. However, given Takata's minority position on the policy board, ING anticipates the BoJ to pause after any September hike. A hawkish Federal Reserve could maintain USD/JPY near the 160-162 range for an extended period.
Takata, one of the three hawks on the BoJ committee, aims to bring the policy rate to neutral at 2.00% swiftly. A September BoJ hike would signal an accelerated pace in interest rate hikes following the June tightening. The Fed's hawkish stance is a significant factor, as it could allow USD/JPY to linger longer in the 160-162 range.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
