Sumitomo Mitsui Nikko Securities strategist Ataru Okumura said Fed rate hikes
Prompted by rising inf could increase tightening pressure on the Bank of Japan.
He noted the wide rate differential with the US has been the main driver of yen
weakness, and a new global tightening cycle could expose the BOJ’s relative lag
in raising rates. Okumura added market concern about Japanese government
intervention may cap USD/JPY around the 160 area, but investors doubt how long
intervention can hold, potentially forcing the BOJ to slightly accelerate its
rate-hike pace.
