<\/p>\n
Japan\u2019s top currency diplomat Masato Kanda is back on the wires on Monday, unwilling to comment again on whether there was FX intervention.<\/p>\n
\u201cWill continue to take appropriate action against excessive forex moves.\u201d<\/p>\n
\u201cDon’t have a specific level in mind about appropriate forex level.\u201d<\/p>\n
\u201cSpeculative, rapid, abnormal FX moves have bad impact on the economy, so unacceptable.\u201d<\/p>\n
\u201cReady to respond 24 hours, 365 days,\u201d when asked whether Japan was ready to take action in the FX market.<\/p>\n
At the time of writing, USD\/JPY keeps its recovery mode intact near 155.80, having tested 154.50 in an exaggerated reaction to a likely intervention by the Japanese authorities during Monday\u2019s Asian trading. The pair is still down 1.53% on the day.<\/p>\n
The Japanese Yen (JPY) is one of the world\u2019s most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan\u2019s policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors.<\/p>\n<\/section>\n One of the Bank of Japan\u2019s mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns of its main trading partners. The current BoJ ultra-loose monetary policy, based on massive stimulus to the economy, has caused the Yen to depreciate against its main currency peers. This process has exacerbated more recently due to an increasing policy divergence between the Bank of Japan and other main central banks, which have opted to increase interest rates sharply to fight decades-high levels of inflation.<\/p>\n<\/section>\n The BoJ\u2019s stance of sticking to ultra-loose monetary policy has led to a widening policy divergence with other central banks, particularly with the US Federal Reserve. This supports a widening of the differential between the 10-year US and Japanese bonds, which favors the US Dollar against the Japanese Yen.<\/p>\n<\/section>\n The Japanese Yen is often seen as a safe-haven investment. This means that in times of market stress, investors are more likely to put their money in the Japanese currency due to its supposed reliability and stability. Turbulent times are likely to strengthen the Yen\u2019s value against other currencies seen as more risky to invest in.<\/p>\n<\/section>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n \u00a0<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":" Japan\u2019s top currency diplomat Masato Kanda is back on the wires on Monday, unwilling to comment again on whether there was FX intervention. Additional comments \u201cWill continue to take appropriate action against excessive forex moves.\u201d \u201cDon’t have a specific level in mind about appropriate forex level.\u201d \u201cSpeculative, rapid, abnormal FX moves have bad impact on […]<\/p>\n","protected":false},"author":2,"featured_media":113789,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[201,248,251,246,257,276,255,1062,250,252,247,253,249,275,256,254],"class_list":["post-292066","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-blockchain","tag-bsc","tag-chainlink","tag-coin","tag-cryptocurrency","tag-currencies","tag-gta","tag-japan","tag-looks-rare","tag-oracle","tag-polygon","tag-quickswap","tag-safe-moon","tag-usdjpy","tag-wallet","tag-wordpress"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/292066","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=292066"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/292066\/revisions"}],"predecessor-version":[{"id":292068,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/292066\/revisions\/292068"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/113789"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=292066"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=292066"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=292066"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}