Yen Volatility Nears Six-Week High as Tokyo Inflation Gauge Eyed
- Market bets on more hikes, stronger yen as inflation quickens
- Potential BOJ pushback against yield surge to amplify swings
A gauge tracking near-term price swings in the Japanese yen climbed on Monday, approaching a six-week high as traders grappled with the prospect of more inflationary pressure on one hand and Bank of Japan warnings against a quick surge in bond yields on the other.
One-month USD/JPY implied volatility rose for a second time in three days to 10.77%, on course for the highest close since Jan. 15.