USD/JPY consolidates around 144.50 – DBS
The JPY held on to earlier gains, with USD/JPY consolidating around mid-144, DBS FX & Credit Strategist Chang Wei Liang notes.
BOJ to continue normalizing monetary policy
“Markets will watch Tokyo CPI tomorrow closely, as BOJ Governor Ueda had expressed that further rate hikes could come if the Japanese economy moves in line with forecasts. Meanwhile, equity risks and tensions around the Middle East could keep the JPY supported on safe haven bids.”
“On the political front, former Foreign and Defense Minister Kono Taro announced his plans to run in the Sep 27 LDP leadership election, and stated that it is appropriate for the BOJ to continue normalizing monetary policy as long as inflation remains in line with the Bank’s expectations. He also said it is time to discuss how to balance the budget as interest rates rise.”