ING: The US dollar is expected to find support around 160 yen

The global head of markets said: “Nowadays, the willingness of the speculative market to short the yen has greatly decreased. If anything, the next move by the Federal Reserve may shift toward supporting a rate hike instead of a rate cut.” According to Turner, in addition, the Bank of Japan needs to “implement a very hawkish rate increase to reverse the latest shift in real interest rate differentials that is unfavorable to the yen.” He added that this “would to some extent require the Bank of Japan to address expectations for policy rates to rise above 1.50% next year, which may be difficult in the current political environment.” According to data from the London Stock Exchange Group, the US dollar rose by 0.1% to 159.47 yen.