When approaching the level at 81.50, came on the market speculation that Japan's Finance Ministry will soon take further steps if the USD / JPY goes below 80. Returning to the middle of September, we see that while the Bank of Japan spent more than $ 20 billion on politics of fear and trembling, when the yen reached a level of 83. This was followed several months of agony in a debate among Japanese politicians.Interestingly, in this time concerns the level of USD / JPY at this time is much smaller for very good reasons. In the past three months, the yen was the worst on the dynamics among the major currencies, losing more than 1% against the dollar, the pound 2.5% and 3% of the Singapore dollar and about 7% of the Taiwan dollar. One of the reasons for such poor speakers of Japanese currency is a significant improvement in investor's appetite for risk. The yen was the big winner last year in the so-called time of "capital protection" while investors lost confidence in the major currencies (dollar, euro and pound) as a way to save cost.
Another factor for the officials of Japan is that the economy has withstood last year's capacity is much better than expected, no doubt, thanks to strong Asian demand. At night, a board member of the Bank of Japan Kamezaki suggested that the export is doing well thanks to the weak yen, and that the economy may soon return to a path of moderate growth. And he is not alone in my opinion. In recent weeks we have heard similar statements from some of his colleagues.
Given that the Bank of Japan continues to maintain a soft monetary policy (the economy is still struck by inflation), by contrast with Europe and the rest of Asia, which have started to tighten, the differential in interest rates rapidly declined from the Japanese currency. It is unlikely that this situation will change anytime soon, suggesting that the yen will fall against other major currencies in the near future.
Translate this page
