Currencies
Yen Holds Big Monthly Gain, Japanese Yields Rise Before BOJ
- Japan’s FX chief notes demerits from recent yen weakness
- Investors still on guard for risk of currency intervention
Despite its July advance the yen is still down about 8% this year, the worst performance among Group-of-10 currencies.
Photographer: Noriko Hayashi/BloombergThis article is for subscribers only.
The yen held onto its biggest monthly gain in a year-and-a-half and Japanese bond yields climbed as traders increased bets that the central bank may raise interest rates on Wednesday.
The currency has surged more than 5% versus the dollar in July amid expectations that the gap between the Bank of Japan’s policy rate and the Federal Reserve’s benchmark is poised to narrow. Japan’s two-year and 10-year bonds fell, sending yields higher. The nation’s stocks, which have benefited from yen weakness, declined more than 1% before the Topix index erased its drop.