Yen Continues Downward Slide Amid Intervention Fears and Rate Hike Speculation

The Japanese Yen continues to depreciate against the US Dollar, holding losses below 157.00 USD as market speculation about FX intervention grows.

The USD/JPY pair has rebounded sharply since last week's Federal Reserve rate hike, with investors now pricing a 53% chance of another quarter-point rate increase in October and a 90% chance of at least one rate hike before the end of the year.

The Bank of Japan raised its benchmark interest rate by 25 basis points to 1.25%, with Governor Ueda hinting at further rate hikes in response to economic growth and consumer prices.

However, two dovish dissents within the committee have raised questions about how far the central bank can take its monetary tightening plans.