Trump victory heightens risks for BoJ

While a weak yen gives exports a boost, it has become a headache for Japanese policymakers by pushing up fuel and food-import costs and in turn hurting consumption. — Reuters

TOKYO: A US dollar rally triggered by Republican Donald Trump’s victory in the US presidential election could heighten pressure on the Bank of Japan (BoJ) to raise interest rates as soon as December to prevent the yen from sliding back toward three-decade lows.

Trump’s victory in the US presidential election unleashed sharp US dollar gains, as expectations of tax cuts and tariffs on imports drove optimism about economic growth while fuelling worries about inflation.