The Japanese yen strengthened to approximately 156.9 per dollar on Wednesday, recovering from previous session losses, following comments from Bank of Japan Governor Kazuo Ueda.
Japanese yen strengthens on Ueda remarks
Governor Ueda mentioned that the central bank would discuss the possibility of raising interest rates next week, emphasizing its readiness to increase borrowing costs if the economy continues to improve. He also expressed growing confidence in wage increases, encouraged by positive feedback from various industries. His remarks, which mirrored those of BOJ Deputy Governor Ryozo Himino on Tuesday, reinforced expectations of a rate hike at the bank's upcoming policy meeting.
Finance Minister comments also affected the currency
Furthermore, comments from Japan's Finance Minister Katsunobu Kato sparked concerns about potential government intervention, adding to the currency's strength. On the external front, the pause in the US dollar's rally also supported the yen, as investors awaited crucial US inflation data, which could limit the possibility of Federal Reserve interest rate cuts this year.
