Yen Hits Seven-Month High; Dollar Soft Ahead of US Inflation
Markets now price a 75% chance the Bank of Japan will raise rates this month as Japanese investors may bring funds home.
- On Sept 7, the JPY surged to a seven-month high, driven by market expectations of faster BOJ tightening and Japanese investors shifting funds home.
- Recent moves have been dramatic; the USD traded above 160 JPY as recently as Sept 1, but the unwinding of carry trades has now reversed that trend.
- Standard Chartered strategist Eric Robertsen said the 'recent burst' of JPY strength is a 'potential threat to carry outperformance,' noting the 155 level as a key USD/JPY bottom.
- Traders currently price a roughly 57 per cent chance the Federal Reserve will hike rates this month, though much depends on incoming inflation data.
- Markets are pricing a 75 per cent chance the BOJ will raise rates a quarter point at its Sept 18 meeting, with a 60 per cent probability of another move later this year.
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12 Articles
Business Times
MoneycontrolYen hits seven-month high; dollar soft ahead of US inflation
[SINGAPORE/LONDON] The yen surged to a seven-month high on Monday (Sep 7), as traders appeared to reassess their outlook on the embattled currency, thanks to a combination of factors including bets on faster Bank of Japan tightening and expectations that Japanese investors may shift funds home. Read more at The Business Times.
In a session marked by the restricted liquidity in the markets, with Labor Day holiday in the United States, the dollar retreats from the main pairs developed with the decisions of some of the main central banks marked for the next two weeks. The prospect of a wider monetary squeeze in Japan leads to a trigger from the yen, which reached the highest level against the American currency in seven months on Monday. Near 8:55 a.m. (Brazilian time), t…
The yen climbed to the highest level in seven months in front of the dollar, supported by the Bank of Japan's forecast of tightening monetary policy, while the dollar anticipates American inflation data that might determine the interest path in September.
(Teleborsa) - The yen accelerates and reaches the highest level of the last seven months against the dollar, sustained by the expectations of a possible acceleration in the process of rising interest rates on the...
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