The Japanese yen, paired with the US dollar, continues its steep decline. The current USDJPY exchange rate stands at 153.82.
Japan’s Finance Minister Shunichi Suzuki reiterated this morning that he is closely monitoring currency movements to be fully prepared to make intervention decisions.
Suzuki has been speaking out every day since the yen deepened its decline. The market strongly doubts that the Japanese authorities will conduct financial intervention instead of the usual verbal ones. Statements on the currency have long ceased to be effective, and money is unlikely to improve the situation significantly. It will only give the yen a short respite.
In reality, the situation could be corrected by a narrowing spread between the interest rates of the Bank of Japan and the Federal Reserve System – or clear signs of such intentions. However, the BoJ is not ready to admit that rates can be raised, which is why the yen is in such a dire position.
Source: Roboforex
