The USD/JPY pair is rapidly approaching the 150.00 mark, underscoring the yen’s continued devaluation.
In the USD/JPY pair, the Japanese yen is currently at its lowest point in ten months, with the exchange rate standing at 148.40.
During the Friday meeting of the Bank of Japan, the interest rate was held steady at an annual -0.10%, presenting no surprises. The regulator’s commentary made it clear that they are prepared to make adjustments to the monetary policy structure.
Conversely, the US Federal Reserve System kept the possibility of a rate hike open last week. This may widen the spread between the BoJ and Fed rates, potentially putting further pressure on the yen.
The Bank of Japan has communicated that it needs additional time to collect and analyze data.
According to market sentiment, there’s speculation that the central bank may intervene as the dollar nears the 150.00 yen mark. However, there’s no concrete basis for such expectations. It’s unlikely that the Bank of Japan will delay taking action to support the already weak yen.
The post Ongoing Depreciation of the Yen: Summary for September 25, 2023 appeared first at R Blog – RoboForex.