[ad_1]
Biscut
The Japanese yen (NYSEARCA:FXY) has weakened to a new 24-year low against the U.S. dollar (USDOLLAR) in early Wednesday afternoon trading, in a move that is has investors speculating on whether the central bank will intervene once again to boost the currency.
The yen dipped 0.7% to 146.9 against the greenback, moving past the 145.90 level that triggered the Bank of Japan in September to implement its first yen-buying intervention since the late ’90s.
The currency depreciation came after BoJ Governor Haruhiko Kuroda pledged to keep monetary policy easy via ultra low interest rates despite inflation running above the 2% objective as well as an aggressively hawkish Fed.
“We have to continue our monetary easing until we achieve the 2% target in a sustainable and stable manner,” he said at a Institute of International Finance event in Washington, D.C., as quoted by Bloomberg. “The economy is still recovering from the pandemic so we have to continue to support the economy to recover.”
Brad Setser, a senior fellow at the Council on Foreign Relations, believes the potential for another BoJ intervention this week could be complex, as “the approach to JPY 146 has been smooth, limiting arguments that intervention is primarily about the speed of change,” he said in a Twitter post.
Previously, (June 16) Bank of Japan to take big paper loss if its abandons loose monetary policy.
[ad_2]
Source link
