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Japanese Yen Strengthens on Policy Shift Expectations
Developing
In Short: The Japanese Yen has gained strength, pushing USD/JPY towards 153.00, as comments from US Treasury Secretary Scott Bessent and a strong Tankan business survey reinforce expectations of policy changes in Japan.
MUFG’s Lee Hardman notes that the Japanese Yen (JPY) has strengthened, driving USD/JPY back towards 153.00, as comments from US Treasury Secretary Scott Bessent reinforce expectations of policy changes in Japan.
A strong Tankan business survey adds to the case for continued BoJ policy normalisation and supports the Japanese Yen, while solid Japanese data earlier in the day seem to have reinforced expectations that the BoJ will continue normalising monetary policy, lending further support to the Yen.
USD/JPY stabilizes above 153.50 during the Asian session on Thursday, but remains near a seven-month low set earlier this week as hawkish BoJ repricing continues to underpin the Japanese Yen.
The Melbourne Institute will release its Consumer Inflation Expectations for the current month on Thursday, while the strengthening Yen is expected to continue as policymakers consider their options.
What's still developing
- After a nice stop in the Air Canada Maple Leaf Lounge in San Francisco, I boarded my flight to Denver, where my I got to try a new dish on United Airlines for dinner that greatly exceeded expectations, the subject of this week’s Meal Of The Week.
- It may have done something more subtle: it gave policymakers permission to keep their options open.
Sources
- Fxstreet link