Japanese yen surges to one-month high on growing speculation of imminent Bank of Japan interest rate hike

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Japanese yen surges to one-month high on growing speculation of imminent Bank of Japan interest rate hike

⚡ Markets: A BoJ rate hike would end the era of negative interest rates, strengthening the yen and potentially triggering a significant repatriation of Japanese capital invested abroad. This poses a risk to global bond and equity markets.USDJPYNikkei 225US TreasuriesAUDJPY

The Japanese yen rose sharply against the US dollar, strengthening past the 155 level, as traders increased bets that the Bank of Japan is preparing to raise interest rates for the first time in years. The move is causing an unwinding of carry trades, where investors borrow yen cheaply to invest in higher-yielding currencies.

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10 sources across the spectrum

Financial pressBloomberg — Yen Rises as Intervention, BOJ Rate Hike Risks Jolt Traders

West MSMThe Guardian — Yen soars as Bank of Japan tipped to raise interest rates

Financial pressBloomberg — Carry Trade Exodus Fuels Yen Gain Ahead of BOJ Rate Decision

West MSMReuters — Yen headed for strongest week in a month, dollar flat ahead of payroll data

Financial pressNikkei Asia — Yen continues rise to 155 range on speculation of carry trade reversal

Financial pressBloomberg — US Dollar Slumps to Start September as Yen Surges on Rate Bets

Financial pressFinancial Times — Yen surges as traders bet on Japan interest rate rises

Financial pressNikkei Asia — Yen hits 1-month high of 155 to dollar on BOJ rate hike speculation

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