Could more easing be on the way for the Japanese yen? There is that possibility, according to Japanese monetary policymakers. The move would weaken a yen that has been appreciating recently.
For now, intervention might not be considered necessary for Japanese officials. After all, today the yen is lower in general as Forex traders enjoy a little risk appetite. However, the yen has been in demand recently as eurozone troubles threaten another financial crisis.
Hirohide Yamaguchi, the Deputy Governor of the Bank of Japan made comments that make it clear, however, that Japanese policymakers stand ready to intervene and promote yen weakness if they feel it’s needed. Officials point to last year’s yen interventions as successes that have been helping the economic recovery.
Japan likes a relatively weak yen, since it provides an edge in exports, and helps Japanese companies selling items overseas. The yen policy has been one of relative weakness for quite some time, and Japanese leaders aren’t about to change that. Even after other world leaders expressed annoyance with last year’s intervention, Japanese officials remain ready to do what they consider necessary.
At 13:52 GMT USD/JPY is higher at 78.2300, up from the open at 78.1815. EUR/JPY is up to 94.8835 from the open at 94.2960. GBP/JPY is down to 121.0350 from the open at 121.2200.
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