BlockBeats News, July 2nd, the USD/JPY pair experienced a sharp intraday decline of over 100 pips, hitting a low of 161.13 before rebounding. It is now trading at 161.7.

Earlier, Takahiro Nagahama, a private-sector member of the Council on Economic and Fiscal Policy in Japan, stated that the Bank of Japan should continue to raise interest rates at a moderate pace. He emphasized the importance of moderate rate hikes in correcting the excessive depreciation of the yen. He believes that the Bank of Japan should raise interest rates every six months, a pace that would not harm domestic investment.

He expects the Bank of Japan to raise rates by the end of this year, followed by another hike next summer, and then pause. He added, "I personally think the rate hike in June was appropriate because delaying the hike would lead to excessive yen depreciation, which would hurt households."