Key Highlights
Bank of Japan Governor Kazuo Ueda struck a more cautious tone in an April 13 speech, cooling expectations for a rate hike at the central bank’s April 27–28 meeting.
The signal removes a near-term threat to yen carry trades, an estimated $500 billion in outstanding positions.
Bitcoin climbed 5% to near $74,900 on April 14, touching a four-week high, as carry trade unwind risk eased alongside separate news of US-Iran negotiations.
Bank of Japan Governor Kazuo Ueda signaled a more cautious stance on April 13, lowering expectations that the central bank is preparing to raise rates again later this month. In remarks delivered in Washington and read in Tokyo by Deputy Governor Ryozo Himino, Ueda focused on the economic and market risks linked to the Iran conflict rather than giving a clear signal that an April hike was coming. The speech cooled bets on a near-term move, while Reuters described the BOJ’s options as narrowing as volatility and oil risks rose.
A more aggressive BOJ path could strengthen the yen and tighten financial conditions across global markets, especially at a time when investors are already dealing with war-driven volatility and energy risk. BOJ hike odds fell as the Iran conflict clouded the outlook, helping support a broader rebound in risk sentiment.
BTC is trading at roughly $74,442 on April 14, up from about $70,996 on April 13, when Barron’s described crypto as coming under pressure after U.S.-Iran talks ended without a deal.
