As a key indicator, the Bank of Japan raised its policy rate to 1.25%, with 2 committee members voting against the move. Reports that the Bank of Japan had conducted a rate check were circulated, prompting the view that the weak-yen trend would continue.
Against the backdrop of overseas market movements on the 18th, 外為どっとコム reported that the Bank of Japan had raised its policy rate to 1.25%. The breakdown of votes for and against the rate hike, along with differences in comments made at the press conference, influenced the market’s reaction.
At the same time, reports said that the Bank of Japan had conducted a rate check on USD/JPY, becoming a factor behind heightened caution over intervention. Movements in crude oil prices and long-term U.S. Treasury yields were also said to affect the yen market.
Key indicators from the equity, bond and commodity markets on the 18th included a sharp rise in the Nikkei 225 and movements in long-term U.S. government bonds, resulting in market conditions marked by a mixture of caution and caution.
USD/JPY is expected to move with an eye on crude oil prices and U.S. interest-rate trends, and the Bank of Japan’s pace of rate hikes and the possibility of intervention were summarized as factors that would affect market sentiment.