Better Growth Outlook More Likely to Boost Japanese Yen Than Interventions -- Market Talk

1434 GMT - An improved Japanese economic growth outlook is likely needed to trigger a durable yen rally as opposed to further currency interventions, Societe Generale's Kit Juckes says in a note. "More, or faster Bank of Japan rate hikes won't solve the problem either, unless the Japanese growth outlook makes them appear realistic." Japan's growth gap with the eurozone is expected to widen next year given Japan's higher debt to gross domestic product burden and narrower yield differentials. If Japan's growth remains weak, higher Japanese government bond yields will increasingly weigh on the yen, he says. The dollar rises 0.2% to 157.48 yen. It reached a three-month low of 155.21 Monday, according to LSEG, after the U.S. and Japan confirmed joint intervention. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

August 04, 2026 10:34 ET (14:34 GMT)