Yen joint intervention effect fades, exchange rate returns to 159.28, market focus shifts to Bank of Japan (BOJ) rate hike timing
The Japanese Yen, after rebounding from a near 40-year low of 164 against the US dollar to 155, has weakened again and is currently trading at 159.28. The market generally believes that the impact of the recent joint intervention was weakened by the non-participation of the European Central Bank (ECB) in the coordination, and that any exchange rate intervention would be difficult to sustain without a corresponding interest rate hike by the Bank of Japan (BOJ). Traders are currently pricing in about a 50% probability of a 25 basis point rate hike by the Bank of Japan (BOJ) in September, while analysts at Mizuho Securities and Barclays lean towards an October or December hike, believing the threshold for a September move is high. The Bank of Japan (BOJ)'s July meeting minutes showed that some members believed the pace of rate hikes could be faster than market expectations.
Source:华尔街见闻 · Source Link
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