0106 GMT - A September rate hike from the BOJ may be the minimum needed to prevent another slide in the yen, OCBC strategists say. They now expect the central bank to raise rates by 25 bps to 1.25% on Sept. 18. That could keep the yen-dollar pair stable, while a hold could see the yen move back above 160 against the greenback and potentially test new cycle highs, Sim Moh Siong and Christopher Wong write. Adding to the pressure, Treasury Secretary Bessent called on Japan to move away from reflationary policies, citing the yen's undervaluation and mounting inflation risks. Those comments have reinforced expectations that the BOJ will accelerate the pace of monetary policy normalization. The dollar is last at 158.62 yen.
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