Yen firms after BOJ's Takata says large, back-to-back hikes possible

Bank of Japan board member Takata, known as one of the central bank's most hawkish voices, said he does not rule out a large rate increase or consecutive rate increases. The yen firmed after the remarks. USD/JPY slipped as much as 0.5% to 159.44, after earlier trading at 160.39. Takata said a 25-basis-point increase is not a done deal and that consecutive hikes are also possible when the overall picture is considered. Aozora Bank's chief market strategist said investors had responded to Takata making the scenario explicit. “The market has reacted to Takata clearly saying consecutive hikes are possible,” the strategist said. “His remarks are more aggressive in the size and pace of hikes than recent comments from the BOJ governor and deputy governor.” The original report noted that Takata is regarded as one of the BOJ's most hawkish board members.