Japanese Yen Hits 4-Week High
The Japanese yen strengthened to 156.2 per dollar on Wednesday (1/15), its strongest session in more than a month, following remarks from Bank of Japan Governor Kazuo Ueda. Governor Ueda said the central bank will discuss the possibility of raising interest rates next week, reiterating his commitment to raising borrowing costs if the economy continues to improve. He then expressed increased confidence in wage increases after hearing encouraging views from various industries.
His comments echoed remarks from BOJ Deputy Governor Ryozo Himino, who has signaled that higher interest rates would be appropriate. Additionally, remarks from Japanese Finance Minister Katsunobu Kato revived concerns about potential government intervention, further boosting the currency. Externally, a broad-based US dollar weakness also supported the pair after an unexpected slowdown in US core inflation prompted markets to price in Fed rate cut bets.
Source: Trading Economics
