Yen Weakens, Japanese Political Turmoil Delays Interest Rate Hike Hopes
The Japanese yen weakened for a second straight day on Tuesday, pressured by concerns that domestic political instability could delay the Bank of Japan's (BoJ) interest rate hike plans. More optimistic market sentiment also reduced interest in safe-haven assets like the yen, while a stronger US dollar pushed the USD/JPY pair back above the mid-152s during the Asian session.
Despite the yen's weakness, some market participants still expect the BoJ to raise interest rates later this year. This forecast contrasts with the outlook in the United States, where the Federal Reserve is expected to cut interest rates two more times by 2025. This divergence in monetary policy direction between the BoJ and the Fed could help limit pressure on the yen, although the Japanese currency remains stuck at low levels for the time being. (az)
Source: Newsmaker.id
