Yen Rebounds to 162.70 After Hitting 163.24, as BOJ Hike Prospects Build
Updated
Updated · Bloomberg · Jul 22
Yen Rebounds to 162.70 After Hitting 163.24, as BOJ Hike Prospects Build
3 articles · Updated · Bloomberg · Jul 22
Summary
163.24 per dollar marked the yen’s weakest level since 1986 before it recovered to around 162.70 after Bloomberg reported BOJ officials are open to raising rates faster than economists expect.
A stronger dollar and higher US Treasury yields had pushed the currency down as much as 0.5% overnight, extending pressure from the wide US-Japan rate gap.
The move came after the yen first broke through 163 and prompted Japanese officials to warn of possible bold action, with intervention risks still in focus.
The rebound highlights how sensitive the yen has become to any sign the BOJ could tighten beyond its current path after the currency stayed above 160 since early June.