Yen Buoyed by Dovish Fed as U.S. Rate Hike Bets Recede: Chart

The yen’s world-beating rally to an 18-month high versus the dollar has a lot to do with the dovishness of the U.S. central bank. Traders view Federal Reserve tightening in 2016 as a coin toss after Chair Janet Yellen last week stuck to her message that policy makers will be cautious in raising interest rates again. The yen got a further boost just hours later from the Bank of Japan’s decision to refrain from adding to stimulus.

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