Yen Needs Bank of Japan Hawkish Shift to Become Investment Currency, Strategists Say

According to Oceanic Bank FX strategists Sim Moh Siong and Christopher Wong on June 22, the yen requires the Bank of Japan to adopt a more hawkish stance to transition from a funding currency to an investment currency. While intervention risk remains elevated, intervention alone is unlikely to reverse yen weakness, the strategists said. The U.S. dollar held above 160 yen following Japan's April intervention measures. Japan's Finance Minister Kaoru Katayama said Monday the Finance Ministry will make appropriate responses in the foreign exchange market as needed.
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