USDJPY updating its 6-year highs; the “greenback” is in demand.
The Japanese Yen dropped to the lows of December 2016 against the USD. The current quote for the instrument is 121.66.
The “greenback’s” attack is too strong for the Yen to keep the balance. However, given the current circumstances, the weak JPY might still help the Japanese economy.
On Thursday morning, the Bank of Japan released its Monetary Policy Meeting Minutes. The document said that the regulator was ready to soften its monetary policy without hesitations if necessary.
Some members of the BoJ believe that the Japanese CPI might get close to 2% after April but it’s rather unclear whether this impulse will remain stable.
One of them spoke yesterday and said that the risks for the country’s economy were reduced due to the pandemic impact and geopolitics. The economy is improving but the pressure is increasing.
The Yen could have felt some support if local exporters had been more active. However, due to the global geopolitical uncertainty, businesses and enterprises are choosing to be more careful. At the same time, demand for the Yen as a “safe haven” asset is rather low right now.
Source: Roboforex
