％Japan Government Bond 10Y
JP-10Y
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Hawkish BOJ remarks and rate check speculation may push JGB yields up
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Yen surges against dollar, rate check speculation emerges
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In late New York forex trading, the yen surged against the dollar, rising 0.79% to 158.92 yen per dollar. The trigger for the surge was not clear, but Bank of Japan board member Hajime Takata made hawkish remarks, and analysts pointed to the possibility of a rate check. The yen had hit a 40-year low of 163.98 yen per dollar before intervention in late July, then rose to 155.21 yen after intervention, but had since given back some of those gains. Chris Sikruna of Daiwa Capital Markets Europe said, "It's more likely a rate check than intervention." Meanwhile, the yen remained under pressure from the Japan-U.S. interest rate differential, and on the 2nd it briefly fell to 160.39 yen per dollar, its weakest level since the intervention. The dollar index fell 0.09% to 99.59, the euro fell 0.06% to 1.1585 dollars, the British pound fell 0.23% to 1.3484 dollars, and the Canadian dollar rose 0.42% to 1.384 Canadian dollars per U.S. dollar. The Bank of Canada kept its policy rate at 2.25%, but Governor Macklem said it is prepared to raise rates multiple times if inflation exceeds its target.
Hawkish BOJ remarks and rate check speculation may push JGB yields up