Yen Risks Falling Further as BOJ Dissenters Could Resist Swift Rate Hikes
Dow Jones
Sep 18
0934 GMT - The yen falls to a two-week low against the dollar and risks dropping further after the Bank of Japan raised interest rates to 1.25% but two board members dissented, ING's Frantisek Taborsky says in a note. Toichiro Asada and Ayano Sato, who were appointed by Prime Minister Sanae Takaichi, argued that a rate hike was unnecessary. This could make it hard for the board to reach consensus on another increase this year, Taborsky says. "The dissent...points to resistance against the fastest pace of rate increases in more than three decades and suggests they may increasingly act as a brake on further tightening." The dollar rises more than 1% to 157.90 yen, and could rise toward 160 in the coming weeks, Taborsky says.
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