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The yen faces new risks as strategists worry that the Bank of Japan may delay interest rate hikes until March or later.
A new risk is emerging for the Japanese yen, as forex strategists in Tokyo warn that the Bank of Japan may not raise interest rates until March next year or later. On Wednesday, the market got a taste of this danger as traders reacted to a report that the Bank of Japan reportedly thinks it can afford to wait a bit longer to increase rates, causing the yen to fall to its lowest level in over two weeks. The yen against the dollar dropped to 152.82, and the market is still debating whether the Bank of Japan will take action during the meeting on December 19 or at the next meeting about a month later. Shusuke, the head of Japan forex and rates strategy at Bank of America in Tokyo.
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