Yen Stuck As Fed Start Interest Hikes – 16 March, 2022

The yen was stuck at a six year low against the dollar as the U.S. Federal Reserve underscored just how far the Bank of Japan is likely to lag worldwide policy tightening. Interest rates were raised for the first time since 2018 and policymakers’ projections for as many as six more hikes this year were even more aggressive than expected. Against the greenback, the yen last hit 119.13 per dollar overnight, its lowest since 2016. Against thee Aussie, it was down 1.6% to a four year low of 86.97 yen per Aussie. The euro was up more than 1% against the yen overnight and over 0.7% against the dollar to $1.1044. Sterling hovered at $1.3149. The U.S. dollar index fell 0.5% overnight and edged a further 0.2% lower to 98.287 in early Asia trade. After better-than-expected employment data, the Aussie was at $0.7308, and the kiwi was flat at $0.6836.