Home Business News Yen under pressure after hawkish Fed stance

Yen under pressure after hawkish Fed stance

13th Jun 24 12:09 pm

The Japanese yen edged lower against a basket of major currencies in the early session, as the market widely anticipates that the Bank of Japan (BoJ) will maintain its current interest rates in its upcoming policy decision on Friday.

On Thursday, the rebound in the Japanese currency was reversed as the US Dollar strengthened, driven by a hawkish stance from the Federal Reserve.

As investors look ahead to the BoJ’s policy announcement on Friday, they are particularly focused on any potential signals regarding a reduction in the central bank’s monthly bond purchases.

The latter could help reduce selling pressures on the Japanese yen.

In the meantime, Japanese treasury yields continued to decline from their peak in May and could remain under pressure unless the Bank of Japan takes a more hawkish stance. This could also weigh on the yen although risks of an intervention remain present if the Japanese currency returns to the lows recorded in April.

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