Japanese Yen Could Weaken Further After BOJ Decision
Dow Jones
Yesterday
0941 GMT - The Japanese yen could weaken further after the Bank of Japan dampened expectations for more aggressive policy tightening, MUFG Bank's Derek Halpenny says in a note. The BOJ voted 7-2 to raise rates by 25 basis points to 1.25% on Friday. The split vote is weighing on the yen, along with the BOJ adjusting its statement to say real rates adjusted for inflation are low rather than negative, he says. BOJ Governor Kazuo Ueda's signals about potential rate rises are also probably not strong enough. "Hence, some giveback from recent yen strength makes sense to us over the short-term." The dollar rises to a two-week high of 157.90 yen, LSEG data show.
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