Yen Traders’ Nerves Jangle on Growing Signs of BOJ Hawkish Pivot
- Kishida planning to revise 10-year-old accord with BOJ: Kyodo
- BOJ is scheduled to hold next monetary policy meeting Tuesday
Japan’s Prime Minister Fumio Kishida
Photographer: Andre Malerba/BloombergThis article is for subscribers only.
The yen whipsawed in Monday trade after reports on a potential change to a key agreement between the government and central bank fueled speculation policy makers are moving closer to a hawkish pivot.
Japan’s currency jumped as much as 0.6% after Kyodo said on Saturday that Prime Minister Fumio Kishida may seek to revise a decade-old accord with the Bank of Japan and consider adding flexibility to the 2% inflation goal, potentially paving the way for an end to its ultra-dovish policy. The yen pared gains after a top government spokesman denied the report.