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There is also a view that the Bank of Japan will begin discussions aimed at financial normalization from the next meeting
It is expected that the dollar will continue to be in a state where it is difficult to lower interest rates between Japan and the US, but views have emerged that the Bank of Japan will begin discussions aimed at financial normalization from the next meeting, and it seems unlikely that risk-loving dollar buying/yen sales will expand further. If the depreciation of the yen and the appreciation of the dollar progresses beyond 1 dollar = 156 yen, there is a possibility that market intervention by the Japanese government and the Bank of Japan will be carried out is also likely to be one reason to suppress the rise in the dollar. The April consumer price index is the US economic index scheduled to be announced this week
Express News | Japan Foreign Reserves $1278.977 Bln at End-April ($1290.606 Bln at End-March)--Mof
How can we effectively intervene? Japan's tactic: amplify yen fluctuations and raise shorting costs
The Bank of Japan may have intervened three times since this week, and the exchange rate of the yen against the US dollar surged 3.5% this week. Although analysts believe that the huge interest rate spread between the US and Japan probably made the Bank of Japan's intervention before the Federal Reserve cut interest rates ineffective, the Bank of Japan's strategy may be to amplify fluctuations through intervention and prevent the market from shorting the yen unilaterally. The Bank of America, on the other hand, published a research report saying that the Bank of Japan may carry out multiple rounds of intervention in the near future, but the scale of intervention will not exceed 10 trillion yen or about 65 billion US dollars. Because if the scale of intervention is to be increased, it will be necessary to sell off long-term US debt. In this way, the market will think that the Bank of Japan may run out of gas.
Express News | Japan's Ito: Won't Be Surprised IF Boj's Policy Rate Heads Toward 2% in Medium- to Long-Term Horizon IF Economy Solid
Rise due to the postponement of concrete measures of the Bank of Japan's yen depreciation system
Overview of last week 4/22 to 4/26 Chinese yuan/yen high price: 21.999 yen low price: 21.335 yen closing price: 21.764 yen compared to the previous week: 1.93% ↑ increase, up due to the postponement of specific measures of the Bank of Japan's yen depreciation system. The Chinese yuan, which tends to be linked to the US dollar when the US dollar is strong against the yen due to an upward trend in US economic indicators, also strongly included against the yen. There, the Bank of Japan maintained the current monetary easing policy at the monetary policy meeting, and since there was no movement to reduce government bond purchases, which also had the meaning of the yen depreciation system, yen sales strengthened all at once
Stock Market Today: Asian Benchmarks Mostly Climb Despite Worries About US Economy
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