Japanese Yen Could Fall if BOJ Officials Signal Caution on Raising Rates
Dow Jones
Aug 27
0843 GMT - The Japanese yen risks weakening if comments by Bank of Japan officials suggest they are in no hurry to raise interest rates further, even if they hike rates at the September policy meeting, ING's Francesco Pesole says in a note. Money markets show investors expect two 25 basis-point rate increases by early next year, LSEG data show. "The risks are that officials disappoint markets on the dovish side," he says. The most plausible path for the dollar to stay below 160 yen would be if the U.S. Federal Reserve officials shows a preference for keeping interest rates on hold, rather than raising them in the coming months, he says. The dollar trades steady at 159.30 yen.
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