Yen Soars 1.7% to 155.85 per Dollar as BOJ Hike Odds Hit 77%
Updated
Updated · The Guardian · Sep 3
Yen Soars 1.7% to 155.85 per Dollar as BOJ Hike Odds Hit 77%
3 articles · Updated · The Guardian · Sep 3
Summary
155.85 yen per dollar marked the currency’s strongest level in a month after a 1.7% surge Thursday, extending a 0.9% jump from the previous day.
Hajime Takata’s call for the Bank of Japan to move more “nimbly” drove markets to price a 77% chance of a rate increase at the Sept. 17 meeting, after the BOJ held its policy rate at 1% in July.
Atsushi Mimura said officials were “neither satisfied nor reassured” and remained on heightened alert, with traders also watching for possible intervention after Japan spent 15.4 trillion yen supporting the currency in late July and August.
Global bond markets have stayed volatile after an oil-driven inflation scare and hawkish signals from Fed Chair Kevin Warsh, though the sell-off eased Thursday with 10-year UK gilt yields near 5.1% after touching almost 5.3% earlier this week.