Yen Likely to Remain Under Pressure, Given Japan PM's Reluctance for Rate Hike -- Market Talk

Dow Jones05-18 10:21

0221 GMT - The yen is likely to remain under pressure, given Prime Minister Sanae Takaichi's likely reluctance toward monetary tightening, Daiwa Securities strategists say. "The Takaichi administration's policy stance--which prioritizes using fiscal expansion to combat rising prices--is putting stress on both the bond and currency markets, leading to a steepening of the yield curve and further yen depreciation," they say. If the Bank of Japan delays a rate hike even as companies pass on higher costs, that could weaken the yen further by driving real interest rates even lower, they add. The yen was last at 158.90 per dollar. (megumi.fujikawa@wsj.com)

 

(END) Dow Jones Newswires

May 17, 2026 22:21 ET (02:21 GMT)

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