Deutsche Bank: If the Bank of Japan does not clearly signal a rate hike, the yen may weaken

Mars Finance News, Deutsche Bank analyst Falkmar Bauer stated in a report that if the Bank of Japan keeps interest rates unchanged on Wednesday and remains cautious about future rate hikes, the yen may weaken. He said that the market expects the Bank of Japan to give a fairly clear signal indicating a possible rate hike in June—at least on the condition that the Iran conflict eases by then. If this signal fails to materialize, the warning from Japan’s Ministry of Finance about intervention to support the yen will “no longer be of much help.” Bauer stated that in this scenario, USD/JPY could rise above 160.

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