USD/JPY gains, but Ishiba tones down hawkish bias

The recent nomination of incoming Japan Prime Minister Shigeru Ishib has prompted gains in the yen, but UBS doubts his appointment will substantially alter the speed of yen appreciation. 

At 05:00 ET (09:00 GMT), USD/JPY traded 0.1% higher at ¥143.81, after falling as low as ¥142.09 on Friday after Ishiba won the leadership contest of the country's ruling Liberal Democratic Party in a narrow victory.

Ishiba, a former defense minister, is a critic of past monetary stimulus and markets had been largely expecting a win for hardline nationalist Sanae Takaichi, a vocal opponent of further interest rate hikes.

However, Ishiba has toned down his hawkish bias in recent weeks, analysts at UBS said, in a note dated Sept. 30,  including his comments to the local media over the weekend that “monetary policy must remain accommodative.”

Ishiba's remarks are now aligned with BoJ Governor Ueda’s dovish comments at the September policy meeting, where he signaled that the BoJ will refrain from further rate hikes if the market remains unstable and added that yen strength has reduced the upside risk to inflation. 

“In this context, we think the latest political developments in Japan still justify a more gradual JPY’s appreciation path, rather than an accelerated one,” UBS added.

Over the coming weeks, we will get more clarity on the policy inclinations of the incoming Ishiba administration, particularly from the formation of the new Cabinet members. 

“Our USDJPY quarter-end forecasts currently stand at ¥147, ¥143, ¥140, and ¥138 through 3Q25, and we reiterate our preference to sell the USDJPY on rallies toward the ¥145-¥147 range to position for a longer-term decline,” UBS added.

 

Source: Investing.com

Останні публікації
Adani Energy Solutions says no material impact from Kenya energy deal cancellation
24.11.2024 - 09:00
Amazon doubles down on AI startup Anthropic with another $4 billion
23.11.2024 - 11:00
Dollar climbs, euro weakens to two-year low after PMI data
23.11.2024 - 11:00
Dollar keeps rising; euro falls to two-year low on weak data
22.11.2024 - 12:00
Asian FX muted as dollar remains at 1-yr high; yen steady as inflation rises
22.11.2024 - 07:00
Dollar rises after claims data, bitcoin continues rally
21.11.2024 - 22:00
STOXX 600 snaps four-day losing streak on energy, tech boost
21.11.2024 - 19:00
Deere's profit beat overshadows tepid 2025 outlook, shares rise
21.11.2024 - 19:00
Dollar rises after claims data, bitcoin climb continues
21.11.2024 - 18:00
Deere forecasts weak annual profit as farm incomes sag
21.11.2024 - 15:00
US indictments scythe $27 billion off value of India's Adani Group firms
21.11.2024 - 13:00
Deere forecasts annual profit below estimates as farm equipment demand slumps
21.11.2024 - 13:00
Sterling sags as 'Trump bump' lifts dollar
21.11.2024 - 13:00
STOXX 600 drops for fifth day, Nvidia drags European chip stocks
21.11.2024 - 12:00
Dollar steady near recent highs; euro suffers more weakness
21.11.2024 - 12:00

© Analytic DC. All Rights Reserved.

new
Аналіз ринку Як вплине завтра звіт NFP на курс долара США?