The yen was on track for a third straight day of losses versus the dollar on Tuesday, as traders weighed whether the Bank of Japan would raise rates quickly enough to close the gap with global peers.
Despite the BOJ’s rate hike last week, the Japanese currency has retreated from a seven-month high it touched earlier in September. Investors view the dissent from two policymakers, who pushed for a more cautious pace, as a warning that additional hikes may be harder to implement.
“Whether the central bank quickens its pace remains contingent on how events unfold. Questions of where neutral and terminal policy rates sit are still open for debate,” said Naomi Fink, chief global strategist at Amova Asset Management.
The yen slipped 0.22 per cent to 157.70 against the dollar, though declines were kept in check partly because of a holiday in Japan and the prospect of intervention.
Reuters
