An acceleration in Bank of Japan interest-rate rises wouldn't necessarily lead to a meaningful recovery of the yen on its own, Rabobank's Jane Foley says in a note. While a hasted pace of rate rises would be yen supportive, investors remain worried about the Japanese government's fiscal intentions, she says. "More reassuring messages on this front are likely to be needed before the yen can demonstrate a convincing turnaround," Foley says. Prime Minister Sanae Takaichi has attempted to make reassurances about bond supply but she is perceived to favor expansionary fiscal policy which has contributed to the yen's weakness. The dollar falls 0.1% to 161.86 yen, having reached a 40-year high of 162.83 on July 1, LSEG data show. (renae.dyer@wsj.com)
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Japanese Yen Might Not Stage Decent Recovery Even if BOJ Accelerates Rate Rises — Market Talk
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An acceleration in Bank of Japan interest-rate rises wouldn't necessarily lead to a meaningful recovery of the yen on its own, Rabobank's Jane Foley says in a note. While a hasted pace of rate rises would be yen supportive, investors remain worried about the Japanese government's fiscal intentions…