British Pound drops to three-week low as hawkish BoJ and suspected intervention boost Yen
The GBP/JPY cross remains under intense selling pressure for the second straight day and drops to a three-and-a-half-week low, around the 212.75-212.70 region during the Asian session on Thursday.
The British Pound (GBP) experienced a significant drop to a three-week low against the Japanese Yen (JPY) as the latter strengthened. This decline occurred during the Asian session on Thursday, with the GBP/JPY cross settling near the 212.75-212.70 range. Speculation of a possible intervention by authorities to support the Japanese currency played a role in the outperformance of the JPY.
Traders also considered a hawkish stance from the Bank of Japan (BoJ) regarding upcoming rate hike expectations, which further contributed to the JPY's relative strength. BoJ board member Hajime Takata suggested a more proactive approach to rate hikes, potentially allowing for larger increases. Additionally, Governor Kazuo Ueda emphasized the need to pay closer attention to inflation risks.
The combination of these factors, along with a weaker US Dollar (USD) benefiting the GBP, led to the GBP/JPY cross falling to its lowest level in three and a half weeks.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
