The USD/JPY pair has temporarily halted its upward momentum.
The Japanese yen, in tandem with the US dollar, still exhibits signs of weakness but is presently stabilizing. The current exchange rate for USD/JPY is holding steady at 146.68.
The catalyst for the resurgence of the JPY’s position can be attributed to the local weakening of the US dollar. Even though this respite may be brief, it carries significant importance for the yen.
According to Japan’s Minister of Finance, Shinichi Suzuki, the central bank remains committed to implementing an appropriate monetary policy and collaborating with the government to attain inflation targets. However, he refrained from commenting on recent statements made by the Bank of Japan’s governor concerning the gradual withdrawal from ultra-loose monetary policy tools.
On Monday, long-term interest rates in Japan surged to their highest levels in nearly a decade, driven by expectations of potential localized tightening in the Bank of Japan’s monetary policy. During this period, the central bank’s chairman, Kazuo Ueda, indicated that the regulator might consider discontinuing its negative interest rate policy once inflation reaches the 2% target.
The post The Yen Stages a Recovery: Overview for September 12, 2023 appeared first at R Blog – RoboForex.
