Yen trades around 153.4 per dollar ahead of expected BOJ rate hike
The Japanese yen traded around 153.4 per dollar on Thursday, staying near its strongest level in seven months ahead of an expected Bank of Japan rate hike next week.
4 per dollar on Thursday, staying near its strongest level in seven months ahead of an expected Bank of Japan rate hike next week. 25%, the highest in roughly 31 years, after a June increase. The BOJ is seeking to contain the risk of inflation overshooting expectations as crude oil prices rise and the yen remains weak. The Takaichi administration has also taken a more hawkish line, with policymakers acknowledging the need to curb excessive yen depreciation.
US Treasury Secretary Scott Bessent earlier this week warned traders against betting on a weaker yen, saying he has “pretty good insight” into the BOJ’s actions when making a call and intervening in the currency market. The yen has also been supported by the unwinding of carry trades and expectations of greater capital repatriation.