Japanese Yen: BoJ normalisation supports gains against US Dollar – MUFG
MUFG’s Michael Wan highlights that USD/JPY is still trading above 158, but Governor Ueda’s comments point to further Bank of Japan (BoJ) policy normalisation. Ueda stressed anchoring inflation around 2% and noted upside risks from imports, AI demand and JPY weakness.
The Japanese Yen has continued to trade above 158 against the US Dollar, with the Bank of Japan (BoJ) governor Ueda's comments pointing towards further policy normalisation. Ueda stressed the importance of anchoring inflation around 2% and highlighted upside risks from import costs, AI-related demand, and the yen's weakness. MUFG's Michael Wan remains constructive on the yen, although further gains are likely contingent on the BoJ validating expectations for faster rate hikes.
The 10-year Japanese government bond (JGB) auction drew stronger-than-average demand with yields above 3%, suggesting investors require better compensation for duration risk despite ongoing fiscal concerns. However, this solid auction result may also temper further upward pressure on yields.
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Also reported by 2 other outlets
- Japanese Yen: Losses seem capped against US Dollar – UOB fxstreet.com
- Dollar gains as oil climbs and investors focus on the Fed channelnewsasia.com
