Yen Accelerates, BoJ Gives Signal?
The Japanese yen strengthened throughout the Asian session, reversing the previous day's weakness. The latest BoJ meeting minutes maintained expectations that an interest rate hike is still on the table, while speculation of government intervention to stem currency weakness remains an additional support for the JPY.
However, the market is not entirely sure about the timing of the next move. Expectations that Prime Minister Sanae Takaichi will continue aggressive fiscal spending and hold off on policy tightening have made some market participants cautious. Global risk-on sentiment also has the potential to limit the yen's role as a safe haven.
Externally, the US dollar remains supported by the Fed's hawkish tone, so the decline in USD/JPY may be limited. The next direction will be determined by clearer BoJ signals, comments from government officials regarding the possibility of intervention, and shifts in global risk appetite. (az)
Source: Newsmaker.id
