The Bank of Japan (BOJ) is expected to raise interest rates in 2025, which could significantly impact the dollar/yen exchange rate. The BOJ’s move comes amid rising inflation in Japan, exceeding the bank's 2% target for the first time in years. A rate hike would likely aim to stabilize the yen, which has been weakening against the dollar due to the contrasting monetary policies between the BOJ and the US Federal Reserve. However, the long-term effects will depend on how the Fed responds with its own rate decisions and global economic factors like trade tensions and inflation. The yen’s future strength will depend on both domestic policies and international market conditions.
https://issueinside.blogspot.com/2025/01/the-impact-of-bojs-rate-increase-on.html
The Impact of BOJ's Rate Increase on the Dollar/Yen Currency Pair
The Bank of Japan may raise interest rates this week—what does it mean for the yen's value? / Picture ⓒ Reuters The Bank of Japan's Critic...
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