The post Japanese Yen gains ground due to a potential rate hike by the BoJ appeared on BitcoinEthereumNews.com.

The Japanese Yen appreciates as BoJ could increase rates by 10 basis points on Wednesday. The Bank of Japan is widely expected to announce its bond purchase tapering plans. The US Dollar depreciates as signs of cooling inflation have fueled the odds of three rate cuts by the Fed in 2024. The Japanese Yen (JPY) continues to gain ground on Monday as traders remain cautious ahead of the Bank of Japan’s (BoJ) policy meeting on Wednesday which could see a potential rate hike. Markets are betting that the BoJ may lift rates by 10 basis points to 0.1% and is widely expected to announce its bond purchase tapering plans. The JPY may also receive support as traders potentially unwind their carry trades ahead of the Bank of Japan’s policy decision. Japan’s top currency diplomat, Masato Kanda, informed the G20 on Friday that foreign exchange (FX) volatility negatively impacts the Japanese economy. Kanda noted an increasing likelihood of a soft landing and emphasized the need to monitor the economy and implement necessary measures closely, according to Reuters. The US Dollar (USD) faces challenges as cooling inflation and easing labor market conditions in the United States (US) have fueled expectations of three rate cuts this year by the Federal Reserve (Fed), starting in September. Daily Digest Market Movers: Japanese Yen improves due to expected rate hikes by the BoJ Reuters has published an extensive article on the Bank of Japan (BOJ) review of past policy, highlighting a significant shift in the central bank’s approach to inflation. The key message from the review is that Japan is “ready for higher rates.” However, the review will not result in changes to the price goal or policy framework. On Friday, the US Personal Consumption Expenditures (PCE) Price Index rose by 2.5% year-over-year in June, down…

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Filed under: News - @ July 29, 2024 3:22 am