MARKET NEWS
Sterling drops against yen, dollar and euro - REUTERS
Summary
- Sterling falls sharply versus yen
- BoJ to debate raising rates next week
- Bank of England expected to ease monetary policy
- Analysts say could be too soon to expect sterling rebound
Jan 16 (Reuters) - Sterling dropped sharply against the yen and also weakened versus the dollar and the euro on Thursday as investors focused on monetary policy divergence after last week's sell-off in gilts and the pound.
Money markets priced in around 50 bps of rate hikes by the Bank of Japan in 2025 IRPR after Governor Kazuo Ueda said on Wednesday the bank will debate whether to raise interest rates next week.
The Bank of England is expected to ease its monetary policy, leading sterling to drop 0.77% versus the Japanese currency at 190, hitting a fresh 1-1/2-month low at 189.72.
