Commerzbank: Yen May Fall If BOJ Does Not Send Clear Hiking Signal

Odaily News A report by Commerzbank analyst Volkmar Baur suggests that the Japanese yen could weaken if the Bank of Japan (BOJ) keeps interest rates unchanged on Tuesday and adopts a cautious stance on future rate hikes. Baur indicated that the market expects the BOJ to send a fairly clear signal for a potential rate hike in June — at least on the premise that the Iran conflict has de-escalated by then. If this signal fails to materialize, warnings from Japan's Ministry of Finance about possible intervention to support the yen "won't be of much help anymore." In such a scenario, Baur noted that the USD/JPY pair could rise above 160. (Jin Shi)