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The USD/JPY pair is on a decline post the Bank of Japan meeting.

On Tuesday, the Japanese yen is compelled to slide against the US dollar, with the current USD/JPY exchange rate at 143.50.

The descent of the Japanese yen is driven by the Bank of Japan's unexpected inaction. The December meeting unfolded in a highly routine manner. The central bank upheld its ultra-soft credit and monetary policy, providing no insights into potential deviations from this strategy in 2024.

The interest rate remained steady at -0.10% per annum.

Despite the Bank of Japan's optimistic portrayal of economic trends, citing a moderate recovery and anticipation of inflation surpassing the sustainable 2%, this surge is expected to be short-lived. A local slowdown in the Consumer Price Index (CPI) is anticipated in the near future. The central bank is vigilantly examining currency rates, market dynamics, and their broader impact on the economy and prices.

For investors, there's a lack of novelty and nothing particularly favorable for the yen.

The market, hopeful for a change in rhetoric at the very least, found no such developments.

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The post JPY Faces Downward Pressure: Overview for December 19, 2023 appeared first at R Blog - RoboForex.

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By: Anna Rostova
Title: JPY Faces Downward Pressure: Overview for December 19, 2023
Sourced From: blog.roboforex.com/blog/2023/12/19/jpy-faces-downward-pressure-overview-for-december-19-2023/
Published Date: Tue, 19 Dec 2023 09:17:22 +0000

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