Citibank: The Bank of Japan's decision is unlikely to serve as a catalyst for further yen depreciation

Tomohisa Fujiki from Citigroup Investment Research stated in a research report that the Bank of Japan’s decision is unlikely to be a catalyst for further yen depreciation. The interest rate strategist said, “The market’s reaction to the Bank of Japan’s decision has been very calm.” He also mentioned, “USD/JPY has been consolidating around slightly below 160.” Fujiki noted that, additionally, the overnight index swap market has reflected a roughly 60% probability of a rate hike at the Bank of Japan’s April meeting. Fujiki added, “If external conditions calm down, there is a possibility of a rate hike in April.”