Dollar Jumps Around 1 Yen to Above 157 Yen, Nikkei Index Climbs After BOJ Rate Hike
Two board members dissented, and analysts said the split vote left doubts about how quickly the BOJ will tighten further.
- The Bank of Japan raised its policy interest rate to 1.25 percent from 1.0 percent on Friday, marking a 31-year high; the yen weakened to 158 per US dollar while the Nikkei Stock Average gained 1.38 percent.
- Board members Toichiro Asada and Ayano Sato dissented in a 7-2 vote, prompting Mizuho Securities Co. chief currency strategist Masafumi Yamamoto to characterize the outcome as dovish. "There were no arguments about a larger rate hike," Yamamoto said.
- The yen slumped further after the US Federal Reserve raised benchmark interest rates to a range of 3.75 to 4 percent earlier this week, widening the interest-rate gap between the two nations and pressuring the Japanese currency.
- Josh Gilbert, lead analyst at eToro, said the split vote raised doubts over future tightening speed, noting a sustained yen recovery requires markets to price in faster rate increases or narrower interest-rate disadvantages.
- Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co., stated steady rate hikes could stabilize prices and interest rates, prompting business investment. OCBC Bank expects the Singdollar to remain resilient against the yen in the near term.
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Volatile yen draws intervention watch, other currencies subdued - Regional Media News
By Ankur Banerjee SINGAPORE, Sept 21 (Reuters) - Currency markets focused on the yen on Monday following a sharp drop last week that spurred speculation of a rate check from Tokyo, while investors pondered interest-rate outlooks after a wave of hikes from major central banks [...]
Volatile yen draws intervention watch, other currencies subdued
By Ankur Banerjee SINGAPORE, Sept 21 (Reuters) - Currency markets focused on the yen on Monday following a sharp drop last week that spurred speculation of a rate check from Tokyo, while investors pondered interest-rate outlooks after a wave of hikes f...
Yen Is Vulnerable With Japan on Holiday After BOJ Disappoints
The yen is vulnerable to sharp moves and further declines over the next week, with a three-day holiday in Japan set to reduce trading liquidity and investors disappointed that the central bank didn’t offer stronger guidance on the pace of future interest rate hikes.
(Tokyo=Yonhap News) Correspondent Lee Do-yeon = As the value of the yen fell in the foreign exchange market immediately after the Bank of Japan raised its base interest rate, the Bank of Japan 'rate check' (rate chec...
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