BOJ Rate Hike Triggers Yen Trading Frenzy Amid Intervention Risk
Yen traders are on high alert ahead of the Bank of Japan's (BOJ) upcoming policy meeting, scheduled for September 18. The market is anticipating a rate hike, with some traders pricing in a larger increase than previously expected.
The yen has been gaining ground as traders factor in the potential rate hike, reaching as high as 157.99 on Thursday and rallying 1.2% during New York hours on Wednesday.
A three-day holiday following the policy decision could provide authorities with an opportunity to intervene in thinner trading conditions, leaving market participants bracing for possible action.