Central Banks
Yen Rallies as BOJ’s Ueda Fuels January Rate Hike Speculation
- Ueda echoes earlier comments from deputy governor Himino
- Governor also indicates rising confidence over wage increases
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The yen surged as Bank of Japan Governor Kazuo Ueda joined his deputy in strengthening market expectations for a potential interest-rate hike next week, signaling the central bank is doing its utmost to avoid a global market crash that followed July’s hike.
The Japanese currency strengthened as much as 0.8% to a one-week high of 156.71 against the dollar following Ueda’s remarks at an event hosted by the Regional Banks Association of Japan Wednesday. The governor also indicated rising confidence over wage increases after hearing encouraging views at various new year events and at the BOJ’s recent branch managers’ meeting.