1022 GMT - The Japanese yen could stay weak even if Bank of Japan Governor Kazuo Ueda sounds more "hawkish" by favoring raising interest rates ahead of the June meeting, MUFG Bank's Derek Halpenny says in a note. "The pricing for a [June] hike is already showing an 80% probability, so it's unlikely that a more hawkish BOJ at this stage will be enough to lift the yen," he says. Signals of more rate rises beyond June would help but seem unlikely. Middle East developments and oil prices will therefore remain key. Additional intervention to prop up the yen might be needed, he says. The dollar trades flat at 159.04 yen after hitting a near three-week high of 159.25 Tuesday, LSEG data show. (renae.dyer@wsj.com)
(END) Dow Jones Newswires
May 20, 2026 06:22 ET (10:22 GMT)
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