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Yen jumps more than 2% as Bank of Japan rate rise bets build
The yen hit 155.57 per dollar, its highest level in a month, after a BoJ policymaker signaled the bank may move more nimbly.
The Japanese yen surged more than 2% against the US dollar amid speculation that the Bank of Japan is preparing to raise interest rates, with the latest move lifting the currency to 155.57 per dollar, its highest level against the dollar in a month.
According to the Guardian Business, the yen’s gains on Thursday followed a 0.9% move the previous day, as investors reassessed the likely path of interest rates in Japan and other major economies.
The outlet said global markets have remained jittery following a government bond sell-off tied to fears of renewed inflation pressure, linked to higher oil prices.
The article also cited comments from a BoJ policymaker, Hajime Takata, suggesting policymakers may need to move more “nimbly,” and noted Citi’s view that the remarks were the strongest messaging to date for an expedited rate hike trajectory.