Yen Under Pressure, Dollar Strengthens After Hotter US Inflation
The Japanese yen weakened near 158 per dollar on Wednesday, falling for the third straight session as the dollar strengthened after higher-than-expected US inflation data. The figures reinforced expectations that the Federal Reserve's policy could remain tight for longer.
In Japan, the Summary of Opinions from the Bank of Japan's April meeting showed policymakers discussing the possibility of additional interest rate hikes even as early as the next meeting. Rising oil prices have added to inflation concerns, strengthening the case for keeping tightening options open.
The OECD also estimates the BOJ's policy rate could reach 2% by the end of 2027, adding to market attention on the direction of Japan's policy normalization. However, in the short term, yen movements are still heavily influenced by the strengthening dollar and changes in US interest rate expectations.
Meanwhile, market participants remain wary of potential intervention. US Treasury Secretary Scott Bessent said the US and Japan both view excessive currency volatility as undesirable, comments seen as supporting Tokyo's efforts to stabilize the yen. (asd)
Source: Newsmaker.id
