Danger for Yen Emerges With Speculation BOJ May Stand Pat Longer
- Overnight indexed swaps indicate a 15% chance of December hike
- Yen may slump if central bank waits longer than is expected
A new risk for the yen is emerging, with currency strategists in Tokyo warning that there’s a chance the Bank of Japan may stand pat on interest rates until March or later.
A small taste of the dangers ahead came Wednesday, when the yen slumped to its weakest in level in more than two weeks as traders reacted to a Bloomberg report that BOJ officials saw little cost to waiting before raising rates.