Fed Rate Hike Fuels Yen Weakness Ahead of BoJ Meeting

The US Federal Reserve's recent hawkish rate hike is expected to put pressure on Asian currencies, particularly the yen. The Bank of Japan's upcoming monetary policy meeting on Friday has market strategists focused on the currency's potential reaction.

According to strategists, the yen could weaken towards its 200-day moving average of about 158 per dollar as a result of the Fed's actions. Meanwhile, bond yields in Asia are expected to be influenced by corresponding moves in US bond yields.

The impact on stocks is also being felt, especially among companies sensitive to interest-rate movements. Strategists note that the yen's potential decline could have a ripple effect throughout Asian markets.