Market attention is focused on speculation that BOJ Deputy Governor Himino (氷見野) may signal a September rate hike. The easing of geopolitical risks, falling crude oil prices and lower U.S. interest rates are also cited as contributing factors.
According to reports dated 25 August, geopolitical risks in the Middle East are easing and crude oil prices are falling, while U.S. interest rates are trending lower. These developments are also affecting movements in the foreign exchange market.
BOJ Deputy Governor Himino (氷見野) is scheduled to speak tomorrow morning, and the focus is expected to be on whether he makes remarks signaling a September rate hike. Attention is also centered on the outlook for monetary policy and the dollar-yen exchange rate.