Osamu Takashima Rate Quotations

Expectations of further increases in U.S. interest rates are partly encouraging investors to take money out from Asian stocks. Fund outflows have been weighing on regional currencies.

Prospects for widening rate differentials between the U.S. and economies such as Japan and Europe helped the dollar this year and will continue to do so.

The comment suggests the possibility they will raise rates further, supporting the peso. They will maintain the advantage of higher rates.

It seems that investors are beginning to think that rises in US interest rates may continue for longer than previously thought, and in line with this view they are likely to continue covering short dollar positions in the near-term.

Investors increasingly fear that the US Fed will soon end its rate hike policy, which will keep the dollar in a weak tone against other major currencies.

Most market players have already factored in another 25-basis point hike in the key federal fund rate in the FOMC meeting next month, but whether the Fed will keep raising rates in May depends on economic data, such as the CPI.

The market has already priced in another interest rate hike in March so the dollar's scope for further gains on rate hike expectations is limited.

The market has already priced in another interest rate hike in March, so the dollar's scope for further gains on rate hike expectations is limited.

When interest rates increase, they have a capital loss. During a time of ECB rate increases, Japanese investors don't want to buy European bonds.