Yen Could Struggle if Fed Raises Rates in September
Dow Jones
45 mins ago
0840 GMT - A possible interest-rate rise by the U.S. Federal Reserve in September could cause the yen to fall versus the dollar, ING's Chris Turner says in a note. The yen jumps against the dollar on Thursday amid chatter of potential intervention. For yen gains to continue, however, this could require an increased pace of interest-rate hikes by the Bank of Japan, Turner says. "Any sustainable turn lower in dollar/yen now probably requires a much more hawkish Bank of Japan and some new initiatives to encourage domestic investment in Japan." The dollar falls 1.0% to 157.14 yen, having hit a one month-low of 156.34 yen earlier, LSEG data show. Markets price a 59% chance of a Fed rate increase in September.
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