Fed hikes won’t sway US dollar unless pace much faster than forecast: BOJ’s Kuroda

BANK OF JAPAN (BOJ) governor Haruhiko Kuroda said US dollar moves may not be affected much by US interest rate hikes unless the pace is much faster than expected, according to a recording of an online interview by the Financial Times aired on Wednesday (Jun 8).

The US Federal Reserve has made "quite clear" how much it would like to raise interest rates, which has been priced in well by markets, Kuroda said in the interview recording.

"Unless the Fed raises interest rates must faster than, or more than what their forward guidance shows, the US dollar rate may not be so much affected by (US-Japanese) interest rate differentials," he said.

Kuroda also said he does not expect China's Covid-19 lockdowns to have a long-term impact on Chinese and global economic growth, with any fallout likely to be temporary. REUTERS