Rabobank: If the possibility of a rate hike increases, the Japanese yen may appreciate.

Dutch cooperative bank forex strategist Jane Foley said in a report that if the Bank of Japan raises interest rates before the end of the year, the yen will benefit. She said that assuming political uncertainty eases in the coming weeks, the passing of the US-Japan trade agreement and the results of last week's Sunday Senate elections could increase the likelihood of further rate hikes by the Bank of Japan. "Given that the Bank of Japan will hold a meeting on July 31, the market will have the opportunity to evaluate the potential impact of the trade agreement on monetary policy." It is widely expected that the Bank of Japan will maintain policy stability, but the market will be looking for clues for possible future rate hikes.