Yen Rises Again, Market Awaits Bank of Japan Policy Direction
The Japanese yen strengthened again against the US dollar in Asian trading on Wednesday after fluctuating the previous day. This strengthening was driven by expectations that the Japanese government would intervene to prevent further yen depreciation. Furthermore, rising global risk aversion sentiment has made the yen once again sought after as a safe haven asset.
Additional support came from market expectations that the Bank of Japan will continue to tighten its monetary policy. However, investors remain cautious and are likely awaiting the outcome of the Bank of Japan's meeting, which will be announced on Friday. This decision is considered crucial for determining the timing of the next interest rate hike.
Nevertheless, the potential for yen appreciation could be limited. The recent sharp decline in Japanese government bond yields has raised concerns about Japan's fiscal condition, particularly due to its loose fiscal policy. This situation has led market participants to exercise caution before pushing the yen higher further. (az)
Source: Newsmaker.id
