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Kuroda Stares Down Market Bets for BOJ Pivot During His Term

  • Japan’s bond market has calmed after a volatile May and June
  • Yen still trading close to key psychological 24-year low
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Japan, Indonesia Expected to Hold Interest Rates Steady
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Market bets the Bank of Japan will join the rush to tighten policy have retreated ahead of Thursday’s policy decision, with no repeat expected of the fireworks lit by short sellers targeting the yen and government bonds in previous months.

Hedge funds seem to have backed down from big bets that Governor Haruhiko Kuroda will tweak the BOJ’s yield-curve control doctrine, although the yen is still uncomfortably close to the key psychological level of 140 per dollar that could reignite speculation over currency intervention.