The US government is said to be pressuring the BOJ over its rate-hike decision, while the Treasury Secretary is reported to have suggested measures that would lead to yen appreciation. Japanese and US financial authorities are said to have discussed exchange-rate trends and the effectiveness of intervention, and some observers say the market is pricing in a September rate hike.
Reports say the US government is pressuring the BOJ over its rate-hike decision. The reports include references to measures that could promote yen appreciation.
The Treasury Secretary is said to have signaled expectations for a BOJ rate hike as a measure that would lead to yen appreciation, while the financial authorities of the two countries discussed exchange-rate trends and the effectiveness of intervention.
Some market participants believe a September rate hike is already priced in, and attention is focused on interest-rate outlooks in Japan and the US and on exchange-rate trends.
Amid reports concerning the Secretary's comments and the market reaction, exchange-rate measures are viewed as a way to buy time, while some also believe that strengthening the drivers of growth in the Japanese economy would support the yen's longer-term valuation.