GBP Slides as Hawkish BoJ Rate Hike Expectations Boost Yen

The British Pound (GBP) fell against the Japanese Yen (JPY) on Thursday, hitting a three-and-a-half-week low of around 212.75-212.70 in the Asian session.

A stronger JPY and fears of intervention by authorities have weighed heavily on the GBP/JPY cross.

Traders are pricing in a high probability of a 25 basis point (bps) rate increase at the next Bank of Japan (BoJ) policy meeting on September 17-18, following comments from BoJ board member Hajime Takata.

Takata suggested that the central bank should adopt a more nimble approach to rate hikes and left open the possibility of a larger hike of 50bps or 75bps at the next meeting.