Commonwealth Bank of Australia: It is expected that the Governor of the Bank of Japan may open the door to another rate hike, which may be as early as October
The Odaily Planet Daily reported that the Japanese yen strengthened against the US dollar and other currencies in early Asian trading. The Commonwealth Bank of Australia (CBA) Global Economic and Markets Research team said in a research report that the Federal Reserve and the Bank of Japan will both hold monetary policy meetings this week, and if the market focuses on the convergence of their monetary policy, the US dollar could fall below the year-to-date low of 140.00 against the Japanese yen. The team said that while the Bank of Japan is expected to keep its policy unchanged this week, its Governor Kazuo Ueda may open the door for another rate hike, possibly as early as October. Meanwhile, the FOMC this week may cut the policy rate by 25 basis points. FactSet data showed the US dollar fell 0.2% against the Japanese yen to 140.52, after touching 140.29 on Friday, the lowest intraday level so far this year.
