JPY is retreating with dignity. Overview for 29.03.2023

The Japanese yen against the US dollar on Wednesday is declining moderately. The current quote is 131.79.

In his speech today, the acting head of the Bank of Japan Haruhiko Kuroda mentioned that the country had come closer to the inflation target of 2% than before. At the same time, wages are getting under more pressure. Later on, inflation might either freeze in place or drop a bit, judging by its dynamics of the last couple of months.

The large-scale softening of credit and monetary conditions, approved by Kuroda, has, indeed, facilitated the growth of prices and the Japanese economy itself. However, the regulator does not have any plan of winding up the soft policy. Meanwhile, Kuroda is leaving his post next month, and not necessarily his successor will be more decisive.

It was Kuroda who radically changed the policy of the BoJ. This affected not only commercial banks, the market, or the economy, but the Japanese people as well. The interest rate of the BoJ has long been -0.1%. The Bank of Japan is the only large regulator that keeps crediting prices negative.

At the moment, the yen reacts to the weakness of the US dollar. The market is confident that the new head of the BoJ will not alter the credit and monetary policy, at least from the start.