Commerzbank: If the Bank of Japan Does Not Clearly Signal a Rate Hike, the Yen May Fall

Odaily Planet Daily News Commerzbank analyst Volkmar Baur stated in a report that if the Bank of Japan keeps interest rates unchanged on Tuesday and is cautious about future rate hikes, the yen could weaken. He said the market expects the Bank of Japan to give a fairly clear signal that a rate hike could come in June—at least on the condition that the Iran conflict eases by then. If this signal fails to materialize, the Japanese Ministry of Finance’s warnings about intervening to support the yen will be "of little further help." Baur noted that in this case, the USD/JPY pair could rise above the 160 level. (Jinshi)