Yen Under Pressure as Global Central Banks Turn Hawkish

Yen under pressure from firm US dollar Cryptocurrencies rally; bitcoin hits an eight-month high Japan has wide interest-rate gap with peers By Tom Westbrook SINGAPORE, Sept 22 (Reuters) — The yen was under pressure from a firm dollar on Tuesday as traders wagered on policymakers in Japan struggling to keep up with a hawkish turn by global central banks, leaving the country's interest rates at a wide gap with major peers. Moves were contained thanks to a holiday in Japan and because of the risk of intervention, after the Nikkei newspaper reported Japan checked dollar/yen rates on Friday. Such a move is often a precursor to stepping into the market.

33 versus the dollar early on Tuesday, while broader financial markets were buoyed by falling oil prices. 1467, though cryptocurrencies have rallied in the past day to lift bitcoin to an eight-month high above $87,000. Aside from bouncing after the rate check report, the yen has been under pressure since a Bank of Japan interest rate hike on Friday came with two dovish dissents. That contrasted with the Federal Reserve, which also hiked rates last week, and most other global central banks which are sounding hawkish and have markets pricing more increases this year.

"Unless the BOJ tightens policy more rapidly than the Federal Reserve, the approximately 275-basis-point US-Japan rate differential should continue to support yen-funded carry trades," said Carlos Casanova, senior Asia economist at Union Bancaire Privée, in a note to clients. 25%. Reserve Bank of Australia Governor Michele Bullock is likely to strike a hawkish tone at a fireside chat scheduled later on Tuesday with markets pricing a 90% chance of a rate hike next week, the country's fourth this year. 7120.

3372. 75%, are much lower than peers. NZD/ "Kiwi price action looks weak as higher-yielding currencies benefit from better carry," ANZ analysts said in a note. com; +65 6973 8284;)