Three reasons why BOJ rate hikes will not save the yen
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After the joint intervention from Japan and the US, the yen currency has been a key focus again in recent weeks. And that just amplifies all the scrutiny on the upcoming BOJ policy decision, with some speculation that the joint intervention included some promise on Japan's end to
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Japan currency intervention not likely to sustainably curb yen weakness - poll
The desk believes that Japan's currency intervention efforts are unlikely to yield sustainable results in curbing yen weakness, particularly as the USD/JPY approaches 158.50, the highest level in two weeks. Per the full note [source], a recent Reuters poll indicates that 74% of economists view currency intervention as ineffective, while 65% expect the Bank of Japan (BOJ) to raise rates to 1.00% by June. This sentiment is compounded by the ongoing geopolitical tensions in the Middle East, which may further complicate Japan's economic outlook.