Japan Backs Faster Rate Hikes, Weighing on USD/JPY
The Japanese Yen has seen USD/JPY trading just below 160.00 as Japan's government signals support for faster Bank of Japan (BoJ) rate hikes.
This move reinforces narrowing US, Japan differentials and a lower USD/JPY case, according to Brown Brothers Harriman’s (BBH) Elias Haddad.
Haddad argues that the narrative that BoJ must tighten aggressively to strengthen Japanese Yen is misleading, with fiscal risk and intervention risks key to future alignment.