Yen Holds Near Two-Week Low vs Dollar Despite BoJ Rate-Hike Bets
USD/JPY traded around 159.50 in Asian hours Tuesday, keeping the yen near its weakest level in two weeks as market participants remained confident about a Bank of Japan September hike.
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The Japanese yen was changing hands near 159.50 per US dollar during Tuesday’s Asian session, leaving it close to a two-week low against the greenback.
The softness persisted even though markets continued to price in expectations that the Bank of Japan will raise interest rates in September. That hawkish policy outlook would typically support the yen, but the currency remained on the back foot near the 159.50 area.
Traders were monitoring USD/JPY as BoJ rate-hike bets were weighed against current demand for the dollar.
Source: FXStreet Forex News