Yen Tumbles as Japan Struggles to Match Global Hikes

The Japanese yen is under pressure as traders bet on Japan struggling to match hawkish global peers. The yen traded at 157.33 against the dollar, while broader financial markets gained from falling oil prices.

Moves were contained due to a holiday in Japan and the risk of intervention, after the Nikkei reported authorities checked dollar-yen rates on Friday. This move is often a precursor to stepping into the market.

The yen has been under pressure since a Bank of Japan interest rate hike on Friday came with two dovish dissents. The contrast between the BOJ and other global central banks, such as the Federal Reserve, is significant, with most sounding hawkish and markets pricing more increases this year.

Currency pairs were mostly steady, except for the yen. The euro traded at US$1.1467, while cryptocurrencies have rallied in the past day to lift Bitcoin to an eight-month high above US$87,000. The Reserve Bank of Australia governor Michele Bullock is expected to strike a hawkish tone today.