Yen Reaches Multi-Month Highs Ahead of Bank of Japan Meeting
Market comment on behalf of Philippe Schneider DHF Capital's Global Head of Sales
July 25, 2024 (Investorideas.com Newswire) The Japanese yen surged to its strongest level against the dollar since May and reached multi-month highs against other major currencies ahead of the Bank of Japan's (BoJ) upcoming meeting. Anticipated actions, including a rate hike and reduced bond purchases, indicate a shift from the central bank's longstanding monetary stimulus. This appreciation in yen was driven by the unwinding of yen carry trades as yield differentials could continue to shrink as monetary policy start to change. The yen's strength was further supported by a broader market sell-off and the currency's safe-haven appeal.
At the same time, Japanese government bond (JGB) yields continue to show volatility close to their highest levels this year amid growing expectations that the Bank of Japan could raise interest rates again when it meets next week, leaving market participants unsettled ahead of the meeting. The anticipation of BoJ's potential policy shifts will likely keep the yen on its upward trajectory in the near term, while JGB yields might remain elevated, with the 10-year yield stabilizing above the 1.05% mark, driven by the unwinding of yen carry trades and broader monetary policy changes.
More Info:
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.
More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/
Global investors must adhere to regulations of each country. Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp