BoJ Rate-Hike Expectations Strengthen Japanese Yen
BNY strategist notes rising JGB yields are fueling a roughly 50% chance of a September BoJ hike, lending support to the yen.
USDJPY
Long-end Japanese government bond yields are climbing due to inflation and fiscal concerns, according to BNY’s Wee Khoon Chong. Markets are currently pricing a roughly 50% probability of a 25-basis-point rate hike by the Bank of Japan as early as September, with a full hike fully priced in by year-end. This tightening outlook is providing support for the Japanese yen.
Source: FXStreet Forex News