EUR/USD 1.17443
-0.088%
Gold 4952.97
0.345%
Oil 59.797
0.356%
USD/JPY 158.591
0.109%
GBP/USD 1.34909
-0.082%
GBP/JPY 213.959
0.043%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
January 23 - According to the Guangdong Branch of the Peoples Bank of China, by 2025, Guangdongs cross-border RMB settlement volume will rank among the top three provinces in China, with a year-on-year increase of 21.5%, accounting for more than 50% of total cross-border receipts and payments in both local and foreign currencies, both of which are record highs.On January 23, Tencent Group released an anti-fraud report, stating that throughout 2025, Tencents anti-fraud investigation department discovered and investigated more than 70 cases of violations of Tencents "red lines," and more than 90 people were dismissed for violating Tencents "red lines." Among them, more than 20 people were transferred to the public security organs for suspected crimes, and more than 30 external personnel involved in the cases were also arrested by the public security organs.Bank of Japan: Regarding the US economy, it is necessary to pay attention to factors such as the impact of tariffs on employment and income formation through deteriorating corporate profits.On January 23, the Bank of Japan (BOJ) kept its benchmark interest rate unchanged to observe the impact of last months rate hike on the economy. The statement said the BOJ kept the benchmark interest rate at 0.75% on Friday, consistent with the forecasts of all economists surveyed. Borrowing costs are at their highest level in 30 years. The BOJ will monitor its impact on prices and the economy and consider the timing of its next move accordingly. Just days earlier, Japanese Prime Minister Sanae Takaichi pledged to suspend the consumption tax on food, a move that triggered turmoil in financial markets. BOJ Governor Kazuo Ueda will elaborate on the reasons for the banks decision, possible interest rate trends, and the inflation outlook at a press conference this afternoon. His comments could influence the yens exchange rate, and any comments he makes about the recent surge in long-term yields will be closely watched.Bank of Japan: The output gap is expected to improve along with the trend and widen moderately.

The USD/JPY exchange rate reaches 133.50 as the BOJ's summary of viewpoints bolsters the outlook for loose policy

Alina Haynes

Dec 28, 2022 10:59

USD:JPY.png 

 

After fluctuating around 133.50 during the Asian session, the USD/JPY pair has breached to the upside. The Japanese Yen is volatile due to expectations that the Bank of Japan (BOJ) will retain its ultra-lax monetary policy.

 

The USD Index has maintained a range-bound performance near 103.80 despite the volatility of risk-sensitive assets. The selling pressure on the S&P 500 on Tuesday was caused by weakness in technology companies. In addition, a decline in economic activity, as recorded by the Trade Balance figures of the United States Census Bureau, caused uncertainty to US markets.

 

In November, the US international interest rate gap dropped by $15.5 billion, from $98.8 billion in October to $83.3 billion. The drop in the trade deficit is not attributable to a rise in exports, but rather to a general decline in economic activity. The United States economy has begun to feel the effects of the Federal Reserve's (Fed) decision to boost interest rates to combat inflation.

 

In the interim, the decline in US Durable Goods Orders and household consumption spending has begun to raise red flags regarding the Federal Reserve's aggressive monetary policy. The economists at ING anticipate that the recession will hasten inflation's reduction, allowing the Fed to reduce interest rates by the end of CY2023.

 

Reuters shared the Bank of Japan (BOJ) Summary of Opinions for the most recent monetary policy meeting, which underlined that the central bank must sustain its easy monetary policy because Japan is in a vital phase for achieving its price target. In addition, the economy is exhibiting signs of wage increases, which is a positive economic cycle; yet, it is prudent to maintain a loose monetary policy for the time being.


Suggestion