The Bank of Japan is widely expected to raise rates at its Dec. 17–18 meeting, but caution over the economic impact of further tightening has raised doubts about the pace of subsequent increases. A slower Japanese tightening cycle could make dollar assets more attractive and renew pressure on the yen. Japanese Finance Minister Satsuki Katayama warned Friday of “one-sided and rapid” currency moves, saying authorities would respond appropriately in close coordination with the U.S. Treasury.
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