Bullish
USD/JPY rises above ¥158.50 as traders price in 70% chance of Fed rate hike
The USD/JPY pair has surged past the ¥158.50 mark, driven by heightened expectations of a Federal Reserve rate hike. Market participants now anticipate a 70% probability of the Fed increasing rates, up from 50% last week, bolstering the US dollar against the yen.
Key points
- Traders now see a 70% chance of a Fed rate hike, up from 50% last week.
- The Bank of Japan raised its policy rate to 1.25%, the highest in 31 years, but provided limited guidance on future increases.
- Japanese authorities have conducted rate checks, indicating potential intervention to curb yen weakness.
Sources
AI-generated from public news sources. Not financial advice.
