Navigating Japan’s Concerns: The Weakening Yen and Policy Dilemmas
Japan’s finance minister, Shunichi Suzuki, expressed growing concerns about the weakening yen on Friday, highlighting the potential negative repercussions for the economy. His remarks came shortly after the Bank of Japan (BOJ) opted to maintain its existing policy settings, a decision that spurred further depreciation of the yen against the dollar, plunging to levels not […]
Policymaker assembly ends with yen standing upright
The yen demonstrated a significant strengthening on Tuesday in response to the news of an upcoming meeting between Japan’s finance ministry and central bank. Simultaneously, the dollar surged to a two-month high against a basket of its peer currencies following the resolution of the U.S. debt ceiling issue. After the news was made public, the […]
How is the bond yield controlled in Japan?
The Bank of Japan’s (BOJ) commitment to controlling bond rates with inflation over the BOJ’s objective is being put to the test by investors, who are fiercely attacking the yield curve control (YCC) of the bank.In an endeavour to permanently reach 2% inflation, the BOJ’s super easy policy sets some short-term borrowing costs at -0.1% […]
Policy takes the u-turn; BoJ’s yield curve may slip
After the Bank of Japan’s (BOJ) effort to buy itself some breathing room backfired, encouraging bond investors to try its resolve, the central bank is under fire to alter its policy on interest rates as soon as Wednesday.The BOJ maintains its decades-long effort to fuel price increases in the third-largest economy in the world even […]
Stocks are calm ahead of a possible CPI hurricane
On Thursday, Asian markets remained below seven-month highs as investors awaited confirmation from U.S. data that inflation is on the decline. The yen increased on news that Japan will examine the consequences of its ultra-easy monetary policy next week.MSCI’s broadest index of Asia-Pacific shares outside of Japan (.MIAPJ0000PUS), which followed advances for Wall Street indexes […]
Yen reaches seven-month peak amid optimism for a change in BOJ policy
On Tuesday, the yen surged to a seven-month peak versus the dollar due to growing speculation that the Bank of Japan would abandon its ultra-accommodative monetary policy.When the BOJ widened the yield cap variety on 10-year Japanese government bonds (JGBs) steadily for the past month, a supposition that the bank was about to start abandoning […]
Share markets fluctuate, dollar loses ground to the yen
On Monday, stock markets were in a shaky mood as poor Chinese economic data fueled concerns about the sustainability of Wall Street’s advance. At the same time, the dollar dropped against the yen as traders were compelled to exit abruptly unfavourable short positions. As new viral outbreaks weighed on demand, China’s official industrial activity indicator […]
BOJ still reeling from yen complications, looming inflation at the door
Hirokazu Matsuno, the Chief Cabinet Secretary, has commented that Japan has its eyes set on the central bank to take necessary measures in appropriation to the yen’s fallout and the surging cost of living. The currency’s unanticipated decline to a 24-year low has to be countered carefully. Thankfully, Tokyo’s willingness to set back standards in […]
Yen sinks, Aussie climbs as Evergrande contagion fears recede
The safe-haven yen sank to its lowest in nearly three months. From a one month low, the Australian dollar continued to recover. The fears of widespread contagion from China Evergrande Group receded is the main reason for this. The yen also fell as higher U.S. yields attracted Japanese investor money. From July, the U.S. yields […]