Updated
Updated · investinglive.com · Sep 8
Yen Hits 6-Month High Below 153 as BOJ Hike Bets Build on Strong Japan Data
Updated
Updated · investinglive.com · Sep 8

Yen Hits 6-Month High Below 153 as BOJ Hike Bets Build on Strong Japan Data

3 articles · Updated · investinglive.com · Sep 8

Summary

  • USD/JPY dipped below 153.00, sending the yen to a six-month high as traders ramped up expectations for a Bank of Japan rate hike next week.
  • Japan’s upwardly revised Q2 GDP and strongest wage growth since 1997 reinforced the tightening case, while speculation over a GPIF asset-allocation shift added support for the currency.
  • The stronger yen capped Japanese stocks, leaving the Nikkei up just 0.07%, while South Korea’s Kospi climbed nearly 2% on broad-based buying.
  • AUD and NZD softened after weak Australian business data, a reported halt in some Rio Tinto iron-ore talks with Chinese mills, and dovish RBNZ comments.
  • China’s August trade figures kept the broader regional backdrop mixed: exports matched forecasts, but imports rose 28.2% versus a 30% forecast, underscoring still-soft domestic demand.

Insights

With Japan's wage growth hitting a 1997 high, could an October BOJ rate hike trigger a massive unwinding of global carry trades?
Could geoeconomic shocks be permanently shifting the neutral interest rate, forcing central banks like the RBNZ to rethink their monetary strategies?
As China's domestic demand falters and the Rio Tinto dispute looms, are Australian resource exports facing an impending structural crisis?