The Bank of Japan would need to signal it's prepared to accelerate interest-rate rises for the yen to stage a decent recovery, Rabobank's Jane Foley says in a note. "Even though the BOJ has been tightening policy since 2024, the pace of rate hikes has been slow." Japan's strong Tankan report released Wednesday, rising real incomes and the U.S and Iran signing a memorandum of understanding to end of the war might encourage the BOJ to pick up the pace of rate increases, she says. The dollar rises 0.1% to 162.68 yen after reaching a 40-year high of 162.83 earlier, LSEG data show, and Rabobank expects it to reach 159 in three months.(renae.dyer@wsj.com)
Dow Jones Newswires
Faster Pace of BOJ Rate Rises Needed to Materially Lift Japanese Yen — Market Talk
The Bank of Japan would need to signal it's prepared to accelerate interest-rate rises for the yen to stage a decent recovery, Rabobank's Jane Foley says in a note. "Even though the BOJ has been tightening policy since 2024, the pace of rate hikes has been slow." Japan's strong Tankan report releas…