Japanese Yen: Yen supported by BoJ hike pricing – MUFG
MUFG’s Lee Hardman notes that the Japanese Yen (JPY) has strengthened as markets fully price a 25bps Bank of Japan (BoJ) rate hike at the 18th September meeting, helped by hawkish comments from Governor Ueda and board member Takata.
The Japanese Yen has strengthened as markets fully price a 25 basis points Bank of Japan (BoJ) rate hike for the 18th September meeting, according to MUFG’s Lee Hardman. This boost is attributed to hawkish statements from Governor Ueda and board member Takata. However, higher Brent Oil prices and US yields continue to support the US Dollar (USD), which in turn limits a broader reversal in USD/JPY.
The yen experienced significant movement overnight, reaching a high of 160.39 before dropping below the 160.00-level. Despite hawkish comments from BoJ officials, the yen has been under selling pressure due to ongoing negative energy price shocks in Japan.
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