As the yen slid past 145 per
dollar with barely a murmur from Japanese policymakers during
recent days, suspicion grew that they won t be as quick to order
intervention as they were last year as they. -Today at 04:11 am- MarketScreener
As the yen slid past 145 per dollar with barely a murmur from Japanese policymakers during recent days, suspicion grew that they won't be as quick to order intervention as they were last year as they now reap some benefits from a weaker currency. The Bank of Japan is taking baby steps away from its ultra-loose monetary policy, and there are increasing hopes that U.S. rates may have peaked, but as of now, the bond market provides a good reason to sell yen. Yet currency traders remain nervous about provoking intervention, as the yen entered the same zone that triggered heavy dollar selling by Japanese authorities in September and October of last year.
A weaker yen generates suspicion that the Japanese government may not intervene to prop up the yen given some benefits from a weaker currency: surging exports helped economic growth, at an annualised basis, reach 6% in the second quarter, and lower global oil prices have kept a lid on the import bill. Further, the gap between Japanese and U.S. yields underpins the yen s weakness.
Investors are on edge ahead
of Friday s U.S. jobs report after more evidence of economic
resilience cemented expectations of higher rates for longer and
sent yields to a 16-year high. .
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