Home›Forex›Major Pairs›BoJ rate-hike talk lifts volatility expectations for U…

BoJ rate-hike talk lifts volatility expectations for USD/JPY near 163

Markets are pricing a meaningful chance of another BoJ hike by October, with policy still expected to be unchanged at the July 31 meeting.

Reported · Written up by our desk · Major Pairs

BNY’s Geoff Yu said Bank of Japan officials are reported to be open to raising rates faster than economists expected, citing risks that Japanese yen weakness could lift inflation pressures.

The policy outlook is still seen as unchanged for the July 31 meeting, after the BoJ raised its benchmark rate to 1% at its prior decision, but market pricing now points to a meaningful chance of another hike by October.

With expectations shifting, FXStreet’s market note highlighted increased USD/JPY volatility around 163 as traders react to the possibility of earlier action than December if needed.

Latest closeUSD/JPY 162.90 ▲0.3%

More like this

Sources