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Indonesia News Portal for Traders | Financial & Business Updates

16 September 2024 10:19  |

Japanese Yen Hovers Near an Over 1-Year High

The Japanese yen rose to around 140.5 in holiday-thinned trading on Monday, hovering near its highest levels since July 2023 amid a widening monetary policy divergence between Japan and the US.

The Bank of Japan is widely expected to hold rates steady this week while leaving the door open for another rate increase, possibly as soon as October. Last week, BOJ board member Naoki Tamura said that the central bank must push up short-term rates to at least around 1% through fiscal 2026 to stably achieve the 2% inflation target.

BOJ board member Junko Nakagawa also said that the central bank will continue raising interest rates if the economy and inflation move in line with its forecasts. On the other hand, the US Federal Reserve is expected to cut rates for the first time in four years this week, with current market pricing leaning toward a larger 50 basis point reduction.

Source: Trading Economics

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