Yen Weakens Despite Hawkish BOJ Outlook
The Japanese yen slipped to around 158 per dollar on Tuesday, surrendering part of its previous session’s gains as hawkish signals from the BOJ failed to provide sustained support for the currency. According to the latest Summary of Opinions, policymakers generally agreed that interest rates should continue rising, as underlying inflation has reached levels broadly in line with the central bank’s 2% price stability target. Some members also called for a faster pace of monetary tightening to bring interest rates closer to neutral, pointing out that businesses have become more resilient to higher borrowing costs. BOJ Chief Economist Seisaku Kameda added on Monday that the central bank is likely to raise rates in December and maintain its tightening cycle next year. Meanwhile, Finance Ministry data confirmed that Japanese authorities intervened in the foreign exchange market in late July to support the yen, purchasing a record ¥15.4 trillion over a three-day period.
The Japanese yen slipped to around 158 per dollar on Tuesday, surrendering part of its previous session’s gains as hawkish signals from the BOJ failed to provide sustained support for the currency. According to the latest Summary of Opinions, policymakers generally agreed that interest rates should continue rising, as underlying inflation has reached levels broadly in line with the central bank’s 2% price stability target. Some members also called for a faster pace of monetary tightening to bring interest rates closer to neutral, pointing out that businesses have become more resilient to higher borrowing costs.
BOJ Chief Economist Seisaku Kameda added on Monday that the central bank is likely to raise rates in December and maintain its tightening cycle next year. Meanwhile, Finance Ministry data confirmed that Japanese authorities intervened in the foreign exchange market in late July to support the yen, purchasing a record ¥15.4 trillion over a three-day period.