MARKET OUTLOOK - Japanese Officials Expected to Intensify Warnings Against Yen Depreciation

Forex - The Yen has slightly weakened against the majority of G-10 and Asian currencies. Attention is focused on potential verbal intervention by Japanese officials following the USD/JPY reaching its highest intraday level since the end of July overnight. In a research report, Kristina Clifton from CBA stated, "We expect Japanese officials to increase their warnings against the depreciation of the JPY, which could help limit the upward movement of USD/JPY." The senior economist and senior currency strategist noted that a weaker JPY has also brought forward expectations regarding the BOJ's next interest rate hike.