Investors reload rate hike bets in Japan
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 19 2024
0mins
Source: Reuters
Market Reactions to Yen Decline: Investors are anticipating a hawkish shift from the Bank of Japan due to the yen's decline, leading to increased buying of bank stocks and shorting of bonds as they brace for potential rate hikes next month.
Impact on Monetary Policy: The falling yen, which has lost over 30% against the dollar since 2021, is pressuring the BOJ to reconsider its monetary policy, with speculators increasing bets against the currency amid concerns about inflation and economic performance.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
