FOREX — Yen slumps after BOJ hikes rates as expected
BOJ votes 7-2 to hike by 25bps; 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 (Adds BOJ decision, updates markets) By Gregor Stuart Hunter SINGAPORE, Sept 18 (Reuters) — The yen sank against its major peers in Asian trading on Friday after a widely-expected rate hike from the Bank of Japan failed to arrest the currency's decline. The Japanese currency weakened 0.6% to 156.91 yen per dollar, resuming its slide after snapping a three-day losing streak on Thursday even as the BOJ lifted interest rates to the highest level in more than three decades. The decision was not unanimous, with two board members voting to keep policy unchanged. Against the euro, the yen was 0.7% weaker at 180.21 yen. The yen's softness followed data released Friday which showed Japan's core inflation held steady near the central bank's 2% target in August, highlighting mounting price pressures.. Attention now turns to Governor Kazuo Ueda's press conference later, where he will explain the central bank's decision. "The market will be looking for confirmation that further normalisation remains firmly on th
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BOJ votes 7-2 to hike by 25bps BOJ Governor Ueda to brief media at 0630 GMT Dollar slips as Fed seen narrowly hiking next month Sterling edges up after BoE holds rates, pauses gilt sales (Adds quote, updates markets) By Gregor Stuart Hunter SINGAPORE, Sept 18 (Reuters) — The yen sank against its major peers in Asian trading on Friday, after a widely-expected rate hike by the Bank of Japan failed to halt the currency's decline. 145 yen per dollar, for its weakest since September 3, even as the BOJ lifted interest rates to their highest in more than three decades. The decision was not unanimous, with two board members voting to keep policy unchanged. 32 yen.
"They've just clearly underwhelmed versus expectations here," said Ray Attrill, head of FX strategy at National Australia Bank in Sydney. "And I think that one of the more staggering aspects of it was that they couldn't even get the unanimous vote for that," he said. " The yen's softness followed data on Friday that showed Japan's core inflation held steady near the central bank's target of 2% in August, highlighting mounting price pressures. Attention now turns to Governor Kazuo Ueda's press conference, where he will explain the central bank's decision.
"The market will be looking for confirmation that further normalisation remains firmly on the table, while assessing whether the Bank sees any urgency to move again," said Chris Weston, head of research at Pepperstone Group in Melbourne. 3374, after the Bank of England held interest rates on Thursday and unexpectedly paused sales of government bonds for six months. 1491. 7133 as Reserve Bank of Australia Governor Michele Bullock warned lawmakers that risks to inflation flagged by policymakers appeared to be materialising.
5739. 1900. 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.
86 a 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. 75 respectively. com)