Yen Remains on Intervention Watch
The Japanese yen traded around 158.5 per dollar on Friday, staying near two-week lows and close to the key 160 level that could test Tokyo’s tolerance for further yen weakness. The currency also remained under pressure from a stronger dollar and surging Treasury yields as expectations grew that the Federal Reserve will tighten policy further to curb inflation. Moreover, the yen weakened as the Bank of Japan’s rate hike last week was viewed as insufficiently hawkish, with two officials dissenting from the decision. Meanwhile, former board member Makoto Sakurai said the central bank is expected to raise interest rates roughly once every three months, potentially lifting them to 2% by around June next year as it seeks to tackle mounting inflationary pressures.
5 per dollar on Friday, staying near two-week lows and close to the key 160 level that could test Tokyo’s tolerance for further yen weakness. The currency also remained under pressure from a stronger dollar and surging Treasury yields as expectations grew that the Federal Reserve will tighten policy further to curb inflation. Moreover, the yen weakened as the Bank of Japan’s rate hike last week was viewed as insufficiently hawkish, with two officials dissenting from the decision.
Meanwhile, former board member Makoto Sakurai said the central bank is expected to raise interest rates roughly once every three months, potentially lifting them to 2% by around June next year as it seeks to tackle mounting inflationary pressures.