FOREX — Yen weak ahead of BOJ decision; rate hike expected
BOJ decision due between 0300 and 0500 GMT Governor Ueda to brief media at 0630 GMT Dollar stabilises as Fed narrowly seen hiking next month Sterling level after BoE holds rates, pauses gilt sales By Gregor Stuart Hunter SINGAPORE, Sept 18 (Reuters) — The yen got off to a weak start against the dollar and the euro at the start of Asian trading on Friday, with currency markets in a subdued mood ahead of an expected rate hike from the Bank of Japan later in the trading session. The yen fell 0.1% to 156.19 yen per dollar, resuming its decline after snapping a three-day losing streak on Thursday as traders prepare for the Japanese central bank to lift interest rates to the highest level in more than three decades. Against the euro, the yen was 0.2% weaker at 179.3000 yen. The yen's softness followed data released Friday which showed Japanese inflation fell slightly short of expectations in August. Swaps pricing indicates that the market views a hike from the BOJ as 83% likely, with quarterly rate hikes expected to follow, according to data. "Given the degree of pricing, the rate decision itself may have limited impact on the yen," said Chris Weston, head of research at Pepper
BOJ decision due between 0300 and 0500 GMT Governor Ueda to brief media at 0630 GMT Dollar stabilises as Fed narrowly seen hiking next month Sterling level after BoE holds rates, pauses gilt sales By Gregor Stuart Hunter SINGAPORE, Sept 18 (Reuters) — The yen got off to a weak start against the dollar and the euro at the start of Asian trading on Friday, with currency markets in a subdued mood ahead of an expected rate hike from the Bank of Japan later in the trading session.
19 yen per dollar, resuming its decline after snapping a three-day losing streak on Thursday as traders prepare for the Japanese central bank to lift interest rates to the highest level in more than three decades. 3000 yen. The yen's softness followed data released Friday which showed Japanese inflation fell slightly short of expectations in August. Swaps pricing indicates that the market views a hike from the BOJ as 83% likely, with quarterly rate hikes expected to follow, according to data.
"Given the degree of pricing, the rate decision itself may have limited impact on the yen," said Chris Weston, head of research at Pepperstone Group in Melbourne. " "Governor Ueda’s press conference will therefore be key. 3359 after the Bank of England held interest rates on Thursday and unexpectedly paused sales of government bonds for six months. 1478.
5724. 2100, after edging back from a 2-1/2-month high on Thursday. Traders narrowly expect a hike from the Federal Reserve next month as investors say they are becoming more confident in Chair Kevin Warsh's efforts to reassert the central bank's independence from the White House. 2% chance a week ago, according to the CME Group's FedWatch tool.
76 per barrel as traders reassess supply risks after Saudi Arabia and Yemen's Iran-backed Houthis traded strikes on Thursday. China has asked Tehran to help rein in the Houthis after their military blitz over the past week, three Iranian sources familiar with the matter told Reuters. 39. com)