Yen Advances for Second Day as Traders Rule Out Fed Move in June
- Traders see U.S. central bank on hold until at least December
- Yen is also underpinned by haven-demand before U.K.’s EU vote
Are There Enough Uncertainties to Push Back Fed Hikes?
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The yen advanced for a second day against the dollar as traders ruled out the possibility that the Federal Reserve will raise interest rates on June 15, a day before the Bank of Japan also decides on policy.
Japan’s currency approached the strongest level in a month, pushed also by a government report that showed the economy grew faster last quarter than initially estimated. A gauge of the dollar dropped to the lowest in a month as the odds of a U.S. rate increase by year-end dropped to 59 percent from 74 percent at the start of last week, as reflected in futures. The chances were zero for a June move.