The Japanese yen has dropped noticeably against the US dollar. The current quote is 134.80.
The yen is being betrayed by domestic news and the international background equally.
The morning statistics demonstrated that the trade deficit in Japan in fiscal 2022 (ended on 31 March 2023) had reached a high of 44 years, amounting to 160 billion USD. Previously, such an anti-record was registered in 2013. The growth of the deficit this time is connected to the growth of prices for energy carriers that Japan fully imports. Moreover, the weakness of the JPY also played its part.
In the report presented today, the Bank of Japan left assessments of most country regions positive. The regulator is sure that the inflation is driving towards the target of 2% sustainably. In many regions, wages at small enterprises are growing because of a shortage of workplaces and simultaneous growth of prices.
The nearest meeting of the Bank of Japan is scheduled for 28 April. The BoJ is unlikely to normalise the credit and monetary policy right now. The interest rate will most likely remain at -0.10% per annum.
Source: Roboforex
