Deutsche Bank: If the Bank of Japan does not clearly signal a rate hike, the yen may weaken

Odaily Planet Daily News: German commercial bank analyst Falkmar Bauer said in a report that if the Bank of Japan keeps the “June two-week” interest rate on hold and remains cautious about future rate hikes, the yen could weaken. He said the market expects the Bank of Japan to provide a fairly clear signal indicating that a rate hike could happen in June—at least assuming that the Iran conflict eases by then. If such a signal fails to materialize, Japan’s Ministry of Finance warnings about intervention to support the yen will be “no longer of much help.” Bauer said that in this scenario, USD/JPY could rise above 160. (Jin10)

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