Yen Holds Near 161.12 per Dollar as BOJ Hike Fails to Halt 40-Year-Low Rout
Updated
Updated · Reuters · Jun 19
Yen Holds Near 161.12 per Dollar as BOJ Hike Fails to Halt 40-Year-Low Rout
3 articles · Updated · Reuters · Jun 19
Summary
Japan’s yen edged up 0.2% to 161.12 per dollar on Friday, but stayed pinned near a four-decade low after sliding past 161 and despite last week’s BOJ rate hike.
Core inflation stayed below the BOJ’s 2% target for a fourth straight month in May, undercutting support for the currency even as investors also worried about Prime Minister Sanae Takaichi’s spending plans.
Markets are watching for fresh intervention, with analysts saying Tokyo may defend 161.95 and could need firepower similar to the roughly 511.7 trillion used in April and May.
The dollar remained broadly firm after hawkish signals from Fed Chair Kevin Warsh lifted July hike odds to 38.5% from 8% a week earlier, adding pressure on the yen.