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BOJ says global AI demand could have sticky inflationary effect

BOJ says global AI demand could have sticky inflationary effect

By Leika Kihara TOKYO, Aug 3 (Reuters) - Global AI-related demand may exert lasting upward pressure on Japan's inflation, the Bank of Japan said on Monday, signalling its alarm over mounting inflation risks that could boost the case for a near-term interest rate hike.

Japan's Manufacturing Output Surges Due to AI and Chip Demand, Raising Economic Prospects

Japan's Manufacturing Output Surges Due to AI and Chip Demand, Raising Economic Prospects

Japan's manufacturing sector experienced significant growth in July, marking its fastest pace in nearly twelve-and-a-half years. This surge is attributed to a rise in orders related to semiconductors and artificial intelligence products, as reported by the S&P Global survey. The Japan Manufacturing Purchasing Managers' Index (PMI) recorded a score of 54.5, indicating a strong expansion in manufacturing activities. The increase in manufacturing output was driven by the highest rise in new orders since January 2022, with export orders growing at their fastest rate in over five years, primarily fueled by demand from Asia and the United States. Despite the positive growth, the sector faces challenges such as capacity pressures and elevated input costs due to ongoing geopolitical tensions in the Middle East.

Analysis-Japan's fight with yen bears goes on after joint rescue

Analysis-Japan's fight with yen bears goes on after joint rescue

By Rae Wee and Ankur Banerjee SINGAPORE, Aug 3 (Reuters) - A rare joint U.S.-Japan intervention has raised the stakes on traders betting against the yen, but analysts are doubtful speculators will be kept at bay without tighter monetary policy.

Yen's sudden jump puts traders on alert for further intervention

Yen's sudden jump puts traders on alert for further intervention

SINGAPORE, Aug 3 (Reuters) - The yen surged against the dollar on Monday, putting traders on alert for further intervention by Japanese authorities to shore up the currency, after Tokyo confirmed coordinated yen-buying intervention with the United States last week.

Morning Bid: Yen's to-do list gets harder from here

Morning Bid: Yen's to-do list gets harder from here

A look at the day ahead in European and global markets from Ankur Banerjee Aided by the U.S., Tokyo's coordinated effort to pull the Japanese yen away from 40-year lows was probably what was needed to turn the tide for the frail yen, but will require monetary policy follow-through to make the move

Yen holds gains after Japan, US confirm joint intervention, signal more action

Yen holds gains after Japan, US confirm joint intervention, signal more action

By Makiko Yamazaki and Leika Kihara TOKYO, Aug 3 (Reuters) - The Japanese yen held gains above recent 40-year lows on Monday after Japan and the United States launched a rare joint yen-buying intervention and vowed to take further action if needed to shore up the currency.

Analysis-How a US-Japan pact to hit yen speculators came together

Analysis-How a US-Japan pact to hit yen speculators came together

By Leika Kihara, Makiko Yamazaki and Tamiyuki Kihara TOKYO, Aug 3 (Reuters) - A joint U.S.-Japanese effort to fight off speculative bets against a battered yen last week followed months of preparation by the two nations and a rare and public alignment of interests in Washington and Tokyo over

Yen jumps as traders watch for further intervention

Yen jumps as traders watch for further intervention

By Rae Wee SINGAPORE, Aug 3 (Reuters) - The yen leapt on Monday, keeping traders on alert for further intervention from authorities to shore up Japan's historically weak currency, days after Tokyo and Washington jointly intervened in the foreign exchange market.

Yen climbs as traders watch for further intervention

Yen climbs as traders watch for further intervention

By Rae Wee SINGAPORE, Aug 3 (Reuters) - The yen leapt on Monday, keeping traders on alert for further intervention from authorities to shore up Japan's historically weak currency, days after Tokyo and Washington jointly intervened in the foreign exchange market.

Bank of Japan Signals Potential Rate Hike Amid Inflation Concerns and Yen Intervention

Bank of Japan Signals Potential Rate Hike Amid Inflation Concerns and Yen Intervention

The Bank of Japan (BOJ) has indicated the possibility of an early interest rate hike, as underlying inflation approaches its 2% target. This announcement follows a suspected yen-buying intervention by the Japanese government to address the weak yen's impact on import costs. BOJ Governor Kazuo Ueda emphasized the need to consider upside price risks in future policy discussions, with the next meeting scheduled for September. The BOJ's decision to keep short-term rates steady at 1% was expected, but the hawkish tone suggests a shift in focus towards inflationary pressures.

Bank of Japan Maintains Interest Rates Amid Economic Adjustments

Bank of Japan Maintains Interest Rates Amid Economic Adjustments

The Bank of Japan (BoJ) has decided to keep its policy interest rate unchanged at around 1%, following a recent increase to a 31-year high. This decision comes as the BoJ slightly raises its economic growth forecast for fiscal year 2026 while lowering its inflation forecast. The central bank's cautious approach reflects ongoing challenges, including climate change impacts on European industries and fluctuating global economic conditions. The BoJ's decision was made with an 8-to-1 vote, and the announcement led to a depreciation of the yen against the U.S. dollar.

Dollar eases against yen as intervention risks keep traders wary

Dollar eases against yen as intervention risks keep traders wary

By Saqib Iqbal Ahmed NEW YORK, July 31 (Reuters) - The dollar eased against the Japanese yen on Friday, with traders alert for a second round of intervention after Japanese authorities stepped in to prop up their currency a day earlier.