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The Japanese Yen may struggle as the BoJ appears to be in no rush to raise interest rates. Japan’s Finance Minister Suzuki has expressed his expectation that the BoJ will adopt appropriate monetary policy measures. Minneapolis Fed President Neel Kashkari believes there should be and will be additional interest rate cuts in 2024. The Japanese Yen (JPY) remains steady against the US Dollar (USD) on Tuesday. However, it faces downward pressure amid increasing concerns that the Bank of Japan (BoJ) is not hurrying to raise interest rates. Following the BoJ’s policy decision on Friday, Governor Kazuo Ueda noted that although Japan’s economy is experiencing moderate recovery, signs of underlying weakness persist. Japan’s Finance Minister Shunichi Suzuki stated on Tuesday that he is “monitoring the impacts of central banks’ monetary policies.” Suzuki expressed his expectation that the Bank of Japan will implement appropriate monetary policy measures while maintaining close coordination with the government. The USD/JPY pair may weaken due to increasing expectations for further rate cuts by the US Federal Reserve (Fed) in 2024. According to the CME FedWatch Tool, markets are pricing in a 50% likelihood of a 75 basis point reduction, bringing the Fed’s rate to a range of 4.0-4.25% by the end of this year. Daily Digest Market Movers: Japanese Yen remains subdued amid the dovish BoJ The Jibun Bank Japan Composite Purchasing Managers Index (PMI) declined to 52.5 in September, down from a final reading of 52.9 in August, which was the highest in 15 months. Despite this decrease, it marks the eighth consecutive month of growth in private sector activity this year, primarily driven by the service sector. The Services PMI increased to 53.9 in September, up from a final 53.7 in the previous month. The S&P Global Composite PMI grew at a slower rate in…

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Filed under: News - @ September 24, 2024 3:21 am