Japanese Yen Strengthens on Hawkish Remarks, BOJ May Hike Rates Faster and More Than Expected

Odaily News: Bank of Japan board member Takata Hajime stated that he does not rule out the possibility of significant rate hikes or consecutive rate hikes, remarks that boosted the yen. Takata is among the most hawkish members of the BOJ board. The yen rose as much as 0.5% against the dollar to 159.44, after earlier falling to 160.39. Takata said that a 0.25 percentage point rate hike is "not a done deal." He also noted that, overall, consecutive rate hikes remain a possibility.

Aozora Bank's chief market strategist said: "The market reacted to Takata's explicit indication that consecutive rate hikes are possible. His remarks are more aggressive than the recent statements from the BOJ governor and deputy governors in terms of the pace and scale of rate hikes." (Jin Ten)