According to Tomohisa Fujiki of Citi Investment Research, the Bank of Japan's recent decision is not expected to act as a catalyst for additional weakening of the Japanese yen. In a research report, the rates strategist noted that market reaction to the central bank's move has been subdued. He added that the USD/JPY pair has been trading sideways just below the 160 level. Fujiki also pointed out that overnight index swaps continue to price in a high probability of around 60% for an interest rate hike at the Bank of Japan's April meeting. He further commented that if external conditions stabilize, a rate hike in April remains a possibility.
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