BoJ Hike Fails to Boost Japanese Yen, OCBC Says
OCBC strategists note that the Bank of Japan's 25 basis point rate hike to 1.0% and confirmation of tapering ending in 2027 have not materially supported the Japanese Yen.
The Bank of Japan (BoJ) raised its policy rate by 25 basis points to 1.0% and confirmed that its bond tapering will conclude in 2027. Despite these tightening measures, the Japanese Yen has failed to gain sustained support, according to OCBC strategists Sim Moh Siong and Christopher Wong.
The strategists point out that the market reaction has been muted, with the yen remaining under pressure. The lack of a clear upward move suggests that traders are not convinced of further aggressive tightening by the BoJ, keeping the currency weak against major counterparts.
Source: FXStreet Forex News