Faster BOJ Rate Rises, Steady Fed Rates Needed to Prevent Yen Losses
Dow Jones17:19
0919 GMT - The Japanese yen faces renewed falls unless the Bank of Japan accelerates interest rate rises and the Federal Reserve refrains from raising rates, ING's Chris Turner says in a note. Following last week's joint U.S.-Japanese intervention to support the yen, Treasury Secretary Scott Bessent said he was confident the Bank of Japan would tighten policy. His comments imply the BOJ could raise rates earlier than expected in September in exchange for the joint intervention, Turner says. This might cement the peak in dollar versus yen if the Fed also keeps rates steady, he says. The dollar trades flat at 157.74 yen, having reached a three-month low of 155.21 Monday and a 40-year high 163.98 on July 23, LSEG data show.
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