Japanese Yen weakens on BoJ's lack of hawkish guidance, eyes on potential intervention
The USD/JPY pair gathers strength to around 157.55 during the early trading hours on Tuesday. A lack of explicitly hawkish guidance from the Bank of Japan (BoJ) after the rate hike last week undermines the Japanese Yen (JPY) against the US Dollar (USD).
The Japanese Yen experienced a weakening trend on Tuesday, as the Bank of Japan (BoJ) refrained from delivering a hawkish message following a recent interest rate hike. This lack of strong guidance from the central bank against the US Dollar (USD) contributed to the decline in the JPY's value. Federal Reserve policymakers, including John Williams, Philip Jefferson, and Thomas Barkin, are scheduled to speak later in the day, with unconventional forecasts pointing to a possibility of intervention by Japanese authorities.
The Nikkei newspaper reported that Japanese officials carried out rate checks, which involve asking banks for currency quotes to assess market conditions as a potential precursor to intervention. A hawkish stance from the Fed could bolster the Greenback in the near term, as indicated by a significant increase in the odds of a 25 basis points (bps) rate hike at the Fed's October meeting, now at 56.5%, up from 43.5% a week earlier.
Traders remain vigilant for potential currency intervention from Japanese authorities to stabilize the Yen.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
