The Yen rises on BoJ minutes, with Ueda and US NFP on the Friday docket
The Yen is gaining on a Dollar that is up against the Pound, the Euro, the Kiwi and the Aussie on Thursday. Bank of Japan (BoJ) minutes that read as a case for a December hike did it, with help from a fall in US technology stocks.
The Yen is rising against the US Dollar, which has climbed against other currencies like the Pound, Euro, Kiwi, and Aussie. This shift is due to Bank of Japan (BoJ) minutes suggesting a potential December rate hike, coupled with a decline in US technology stocks. The USD/JPY rate has fallen from just under 159.00 on Tuesday to above 157.50.
The central bank held its interest rate at 1.25% on October 30, with one board member proposing a higher 1.5%. The next meeting is scheduled for December 17-18. The gap between the BoJ and US Federal Reserve rates stands at two and a half points or more. A December BoJ hike would narrow this gap by a quarter-point, provided the Fed maintains its rate.
Similarly, a Fed hike in December and a BoJ hike in Tokyo would keep the gap unchanged. US technology stocks also dropped on Thursday, further boosting the Yen. Japan's labor cash earnings for September are expected to rise by 3.8% year-over-year, and the BoJ Governor Ueda will speak on Friday, along with the release of US Nonfarm Payrolls (NFP) data. The Yen has moved back into the 156.00-159.00 range it has been in since late September.
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