The USD/JPY pair is persistently on the rise.
The Japanese yen, in tandem with the US dollar, is experiencing another bout of depreciation. The current USD/JPY exchange rate is at 151.71.
This currency pair has witnessed a continuous upward trend for six consecutive sessions. However, the past week recorded the sharpest decline of the yen against the US dollar since August, marking a 1.48% drop.
These levels represent the highest observed for the currency pair since early November. Presently, there is uncertainty prevailing in the market regarding whether Japanese authorities will take measures to support the national currency in any form.
The primary cause of JPY’s weakness lies in carry trade operations that hinge on the interest rate differential between the Bank of Japan and the US Federal Reserve. The BoJ’s interest rate remains in negative territory at -0.1% per annum. The yen is positioned vulnerably due to the prolonged ultra-soft monetary policy maintained by the Japanese regulator.
In reality, the outlook for interventions appears quite grim.
The post JPY is Undergoing Devaluation Once Again: Overview for November 13, 2023 appeared first at R Blog – RoboForex.