Commerzbank: JPY Under Pressure if BoJ Fails to Hike Rates

The Japanese Yen has been holding steady against the US Dollar at around 159.35, but inflation data is putting pressure on the currency.

Tokyo's headline CPI reached 1.9% in August, and service sector price gains hit nearly a one-year high, leading to increased market odds for a Bank of Japan interest rate hike in September.

Economists at Commerzbank warn that failing to raise rates would risk undermining JPY stability and put the currency under significant pressure.