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USD/JPY Sees Cautious Gains.

The Japanese yen, in tandem with the US dollar, is once more facing a decline, with the current USD/JPY exchange rate at 147.14.

The yen is hovering near its ten-month lows as investors reassess the monetary policy outlook of the Bank of Japan (BoJ) following recent statements made by the central bank's governor.

Kazuo Ueda, in a statement, mentioned that the central bank might consider discontinuing its long-standing practice of maintaining negative interest rates once a 2% inflation rate is achieved. The response from the financial community was unanimous: such a statement appears more formal and conditional rather than indicative of immediate steps toward normalizing monetary policy.

In reality, Ueda's remarks were not provocative. He simply reiterated what has been known for some time: Japan's ultra-loose monetary policy is geared toward achieving a sustainable 2% inflation rate. When, or if, this objective is met, the central bank will revisit the fundamentals of its monetary policy. It is a declaration of intent in line with diplomatic tradition, suggesting little immediate action or change.

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The post The Yen Slips Once Again: Overview for September 14, 2023 appeared first at R Blog - RoboForex.

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By: Anna Rostova
Title: The Yen Slips Once Again: Overview for September 14, 2023
Sourced From: blog.roboforex.com/blog/2023/09/14/the-yen-slips-once-again-overview-for-september-14-2023/
Published Date: Thu, 14 Sep 2023 08:23:49 +0000

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