Japanese Yen: BoJ hike offers limited support to Yen – BBH
Brown Brothers Harriman’s Elias Haddad highlights a muted reaction in USD/JPY to the Bank of Japan’s 25 bps hike to 1.00%, even as JGB yields underperform and the BOJ maintains its tightening bias and JGB tapering roadmap.

Brown Brothers Harriman’s Elias Haddad highlights a muted reaction in USD/JPY to the Bank of Japan’s 25 bps hike to 1.00%, even as JGB yields underperform and the BOJ maintains its tightening bias and JGB tapering roadmap. The bank notes lower crude Oil prices ease pressure on the Japanese Yen and could help push USD/JPY toward 155.00.

BoJ tightening but Yen gains capped

"Market reaction to the BOJ (Bank of Japan) policy decision was relatively subdued."

"USD/JPY traded in a 10 pip range around 160.20 and the TOPIX is up around 0.5%. 10-year JGBs underperformed across the board, with yields rising as much as 6bps."

"As was widely expected, the BOJ delivered a 25bps rate increase to 1.00%, ending a hold streak that began after its December rate hike."

"The BOJ maintained its tightening bias."

"Bottom line: The slump in crude oil prices takes some pressure off JPY and could help nudge USD/JPY lower to 155.00."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

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