Yen Under Pressure
The yen weakened during Tuesday's session as market participants grew more convinced that Japanese officials cannot match the tightening path pursued by other major central banks, since local rates sit well beneath those elsewhere. Trading was thin because of a Japanese public holiday, and worries about authorities stepping into the market also capped moves. Those worries followed a Nikkei report that a rate check on the dollar-yen pair took place Friday, an action frequently seen just before official intervention.[S1]
Following a slow slide on Monday, the yen held at 157.33 per dollar in early Tuesday dealings, while cheaper crude prices lent support to broader financial markets. The euro was little changed near $1.1467, and most other currencies also traded in narrow ranges. Digital assets, meanwhile, climbed over the prior 24 hours, pushing bitcoin above $87,000 to its strongest level in eight months.[S1]
Rate Expectations and Global Moves
Traders currently assign roughly a 30 percent chance to the Bank of Japan lifting its short-term rate to 1.5 percent in October, compared with about 55 percent odds that the Federal Reserve raises the federal funds target range by a quarter point to 4%-4.25%. Reserve Bank of Australia Governor Michele Bullock is due to speak on a panel later Tuesday and is anticipated to sound hawkish, with markets putting a 90 percent probability on a hike next week, which would be the year's fourth.[S1]
The Australian dollar was steady around $0.7120, and sterling changed hands near $1.3372. New Zealand's currency hovered close to multi-month lows at $0.5708, reflecting the country's comparatively low 2.75 percent interest rate relative to those in other major economies.[S1]
