USD/JPY Continues to Reach New 10-Month Highs.
The Japanese yen is once again demonstrating a decline against the US dollar. The current exchange rate for USD/JPY is at 147.74.
In the upcoming week, the Bank of Japan is scheduled for its regular meeting. Anticipated from recent underwhelming statistical data, it is expected that the regulator will maintain its main controls without change. Recent data revealed a significant weakness in Japan’s GDP for Q2 2023, indicating a stagnant economy. The report highlighted wage growth lagging behind inflation, and the employment sector showing signs of softening. Domestic demand seems insufficient to sustain price dynamics in the long term.
Simultaneously, it’s essential to consider that the BoJ is meticulously monitoring the yen’s exchange rate, especially as the US dollar approaches the 150.00 yen mark. This amplifies the potential for political and fiscal surprises.
Recall that in October 2022, foreign exchange interventions were triggered as the yen approached the threshold of 150.00 yen per dollar.
The post The Yen Shows Significant Weakness: Overview for September 18, 2023 appeared first at R Blog – RoboForex.
