JPY: a new round of devaluation. Overview for 29.06.2023
The Japanese yen, paired with the US dollar, returned to weakening following a short pause. The current USDJPY quote is 144.45.
The US dollar is edging closer to the 145-yen mark, which previously served as the basis for extensive currency interventions. They took place in September and October last year. However, these measures have not produced any significant effect. The ultra-soft monetary policy of the Bank of Japan and the interest rate differentials with global central banks are playing against the yen.
Several high-ranking Japanese officials have expressed concerns about the rapid and sharp decline in the JPY exchange rate. The general sentiment seems roughly the same: policymakers are closely monitoring the market and stand ready to respond if movements become excessively volatile.
It is not clear to which level the yen needs to specifically drop to prompt action from the Ministry of Finance and the Central Bank.
This time, the fall in the JPY exchange rate was triggered by statements made by the Bank of Japan governor that the regulator has a long way to go before achieving 2% inflation and sufficient wage growth.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboMarkets bears no responsibility for trading results based on trading opinions described in these analytical reviews.
The material presented and the information contained herein is intended for our customers, and is for information purposes only and in no way should be considered as the provision of investment advice for the purposes of Investment Firms Law L. 87(I)/2017 of the Republic of Cyprus or any other form of personal advice or recommendation, which relates to certain types of transactions with certain types of financial instruments.