Japan rate hike burns some but core FX sectors stay quiet.

The article reports on the decision of Bank of Japan to double interest rates from 25 basis points (bp) to 50bp in February 2007. The move made an impact on the yen commercial paper (CP) market and caused confusion on some investors. A dealer stated that German investors have been buying a lot of yen paper but were running out of names. According to some dealers, investors in euro-denominated CP were adopting a wait-and-see approach to interest rates.