Analysts: A strong yen and tariff uncertainty could prompt the Bank of Japan to hold its ground this week

Vincent Chung, co-portfolio manager of diversified income bond strategies at T. Rowe Price, said in a note that the Bank of Japan is expected to keep interest rates unchanged at its meeting this week in light of economic growth uncertainties. A stronger yen and concerns about the impact of potential tariffs on economic growth could cause the Bank of Japan to delay further rate hikes. Uncertainty over tariffs has increased risk premia on U.S. assets, and investors must keep an eye on potential trade deals that could lower risk premia. "If volatility in the U.S. Treasury market decreases, long yen positions in the market for safe-haven buying should put pressure on yen appreciation in the short term," he added. (Jin Ten)