Nikkei 225 Faces Most Risks From Strengthening Yen Since 2022
- Nikkei-yen correlation is highest since May last year
- Stocks fall, yen rise as wages, BOJ remarks boost hike bets
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Japanese stocks have become the most sensitive to yen moves in two years by one measure, increasing risks of the record equity rally stalling.
Market moves on Thursday highlighted this relationship: the Nikkei 225 Stock Average tumbled the most in more than a month, as growing speculation the Bank of Japan will end its negative-rate policy at its March 18-19 meeting caused the yen to strengthen against the dollar.