Japan’s top currency diplomat Masato Kanda is back on the wires on Monday, unwilling to comment again on whether there was FX intervention.
Additional comments
“Will continue to take appropriate action against excessive forex moves.”
“Don’t have a specific level in mind about appropriate forex level.”
“Speculative, rapid, abnormal FX moves have bad impact on the economy, so unacceptable.”
“Ready to respond 24 hours, 365 days,” when asked whether Japan was ready to take action in the FX market.
Market reaction
At the time of writing, USD/JPY keeps its recovery mode intact near 155.80, having tested 154.50 in an exaggerated reaction to a likely intervention by the Japanese authorities during Monday’s Asian trading. The pair is still down 1.53% on the day.
Japanese Yen FAQs
The Japanese Yen (JPY) is one of the world’s most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan’s policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors.
One of the Bank of Japan’s mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns of its main trading partners. The current BoJ ultra-loose monetary policy, based on massive stimulus to the economy, has caused the Yen to depreciate against its main currency peers. This process has exacerbated more recently due to an increasing policy divergence between the Bank of Japan and other main central banks, which have opted to increase interest rates sharply to fight decades-high levels of inflation.
The BoJ’s stance of sticking to ultra-loose monetary policy has led to a widening policy divergence with other central banks, particularly with the US Federal Reserve. This supports a widening of the differential between the 10-year US and Japanese bonds, which favors the US Dollar against the Japanese Yen.
The Japanese Yen is often seen as a safe-haven investment. This means that in times of market stress, investors are more likely to put their money in the Japanese currency due to its supposed reliability and stability. Turbulent times are likely to strengthen the Yen’s value against other currencies seen as more risky to invest in.
News & Analyses
Upward Revision to Q2 GDP Aids the US Dollar’s Feeble Recovery
Gold (XAU/USD) and Silver (XAG/USD) Drift as US Dollar Pares Recent Losses
Libya Outages and Middle East Tensions Spark Supply Concerns. WTI Nears key $77.40 Resistance
FTSE 100, DAX 40 and S&P 500 are taking a breather ahead of Nvidia earnings
FTSE 100, DAX 40 and S&P 500 Bid Ahead of Powell Speech
Japanese CPI and Ueda’s Comments Prop up the Yen Ahead of Powell’s Address
Nikkei 225, Dow Jones and Nasdaq 100 Lose Upside Momentum
No comment on whether there was FX intervention
Japan’s top currency diplomat Masato Kanda is back on the wires on Monday, unwilling to comment again on whether there was FX intervention.
Additional comments
“Will continue to take appropriate action against excessive forex moves.”
“Don’t have a specific level in mind about appropriate forex level.”
“Speculative, rapid, abnormal FX moves have bad impact on the economy, so unacceptable.”
“Ready to respond 24 hours, 365 days,” when asked whether Japan was ready to take action in the FX market.
Market reaction
At the time of writing, USD/JPY keeps its recovery mode intact near 155.80, having tested 154.50 in an exaggerated reaction to a likely intervention by the Japanese authorities during Monday’s Asian trading. The pair is still down 1.53% on the day.
Japanese Yen FAQs
The Japanese Yen (JPY) is one of the world’s most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan’s policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors.
One of the Bank of Japan’s mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns of its main trading partners. The current BoJ ultra-loose monetary policy, based on massive stimulus to the economy, has caused the Yen to depreciate against its main currency peers. This process has exacerbated more recently due to an increasing policy divergence between the Bank of Japan and other main central banks, which have opted to increase interest rates sharply to fight decades-high levels of inflation.
The BoJ’s stance of sticking to ultra-loose monetary policy has led to a widening policy divergence with other central banks, particularly with the US Federal Reserve. This supports a widening of the differential between the 10-year US and Japanese bonds, which favors the US Dollar against the Japanese Yen.
The Japanese Yen is often seen as a safe-haven investment. This means that in times of market stress, investors are more likely to put their money in the Japanese currency due to its supposed reliability and stability. Turbulent times are likely to strengthen the Yen’s value against other currencies seen as more risky to invest in.
Source link
Ethereum dips below $2,300 following August NFP data, JP Morgan weighs in on ETH ETF performance
Bears extend their control, aiming for 87.00
US Dollar holds steady after mixed NFPs
Holds steady as US data leaves Fed rate cut uncertainty
XRP dips to one-month low close to $0.53, Ripple co-founder backs Kamala Harris for US presidential election
US Dollar pops after NFP footnotes are enough to dampen hopes for a 50 basis point rate cut in September
Crypto News
Ethereum dips below $2,300 following August NFP data, JP Morgan weighs in on ETH ETF performance
XRP dips to one-month low close to $0.53, Ripple co-founder backs Kamala Harris for US presidential election
Bitcoin, Ethereum, XRP tests key support, TRON network non-stablecoin activity hits new highs
Vitalik Buterin says all Layer-2 token holdings will be donated to charity, won’t sell for profit
WazirX, Penpie hackers move stolen funds via Tornado Cash
Bitcoin faces potential decline if it falls below $56,000 threshold
TON up as Telegram CEO speaks up following arrest
News & Analyses Analyses
Ethereum dips below $2,300 following August NFP data, JP Morgan weighs in on ETH ETF performance
...
Bears extend their control, aiming for 87.00
...
US Dollar holds steady after mixed NFPs
...
Holds steady as US data leaves Fed rate cut uncertainty
...
XRP dips to one-month low close to $0.53, Ripple co-founder backs Kamala Harris for US presidential election
...