(Bloomberg) -- The yen gained against the dollar for the first day in a week as the Bank of Japan raised its growth forecast after standing pat on interest rates as expected.
Most Read from Bloomberg
Strategists said before the BOJ meeting that elevated uncertainty from domestic and US politics would likely prevent a rate hike this month, keeping the market guessing on when the huge rate gap with other countries will narrow. Rising US yields, Federal Reserve caution over further rate cuts, and the looming US presidential election have weighed on the yen this month.
Japan’s currency rose 0.2% as of 12:40 p.m. local time, and traded at as much as 152.95 against the dollar. That pared its loss in October to 6.1%.
A key focus for yen watchers will be whether BOJ Governor Kazuo Ueda will give any hints about the next rate hike at his press conference on Thursday afternoon. The central bank may face increased pressure to raise rates sooner rather than earlier should yen weakness continue.
“The BOJ statement and quarterly outlook report were released without much fanfare,” said Carol Kong, a currency strategist at Commonwealth Bank of Australia. “That puts the focus on Governor Ueda later today who may provide more insights on when the BOJ will next raise rates.”
“A stronger guidance on rate hikes will be a surprise which can bring forward pricing for hikes and push up the yen,” Kong said.
The currency slid to its lowest level since July on Monday after Japan’s ruling coalition lost its majority, extending four weeks of losses. That prompted warnings from Japanese authorities, with Finance Minister Katsunobu Kato saying on Tuesday that the yen has weakened significantly after Japan’s election, and that the government will watch FX moves with a heightened sense of urgency.
(Updates prices, adds comment in fifth paragraph.)
Most Read from Bloomberg Businessweek
©2024 Bloomberg L.P.
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。