The prospect of further interest rate hikes by the Central Bank of Japan may provide support for the yen

On March 7th, Jinshi data reported that the yen fluctuated against the currencies of the G10 countries and Asian currencies, but may be influenced by the prospect of further interest rate increases by the Central Bank of Japan. Christina Clifton, a strategist at the Commonwealth Bank of Australia (CBA), cited news from Japan’s largest labor union organization, stating that the union is demanding a stronger wage rise this year. She said: ‘Another strong wage negotiation result this year will increase the possibility of further interest rate hikes by the Central Bank of Japan. We expect a 25 basis point increase in July and December.’