Created
: 2024.08.28
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
BoJ's Himono: The financial and capital markets remain unstable
World FX news
Breaking news
BoJ's Himono: The financial and capital markets remain unstable
2024.08.28 10:49
2024.08.28 10:49
The Bank of Japan (BoJ) Deputy Governor Ryozo Himino said on Wednesday that the financial and capital markets remain unstable and the Japanese central bank needs to monitor these developments with utmost vigilance.
Key quotes
The financial and capital markets remain unstable.
The BoJ needs to monitor these developments with utmost vigilance.
BoJ also intends to carefully examine the impact these market.
Developments at home and abroad have on the outlet for economic activity and prices, the risks surrounding the outlook, and the degree of confidence in the outlook.
BoJ will adjust the degree of monetary accommodation if it has growing confidence that its outlook for economic activity and prices will be realized.
Will conduct monetary policy as appropriate to achieve the 2% inflation target in sustainable and stable manner while closely communicating with market participants and other stakeholders.
Needs to closely monitor developments in recent market volatilities including weaker stocks and stronger Yen.
BoJ should continue its efforts to refine its approaches to estimate the neutral rate for Japan, and use the results as a useful point of reference.
But BoJ has no other choice but to chart a way forward examining how the economy and prices respond as it conducts monetary policy.
Estimation of the neutral interest rate would not automatically show the right policy path for Japan, at least at the moment.
Our baseline scenario for fiscal year 2025, 2026 envisions a reasonably balanced state where the inflation rate is consistent with the price stability target, and the economic growth is slightly above cruising speed.
The Yen recent appreciation may alleviate the import cost hike and profit squeeze many small and medium-size firms currently face.
But stronger Yen may lower the yen denominated profits of export industries and Japanese multinationals.
Market reaction
At the time of writing, the USD/JPY pair is trading 0.13% higher on the day to trade at 144.15.
Japanese Yen FAQs
The Japanese Yen (JPY) is one of the world's most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan's policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors.
One of the Bank of Japan's 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.
The BoJ's 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.
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's value against other currencies seen as more risky to invest in.
Last updated
: 2024.08.28
Related articles
Japan's National CPI climbs 3.0% YoY in August, Core CPI rises as expected
34 minutes agoEUR/USD grapples with higher ground as Fed cuts weigh on Greenback
34 minutes agoUS Treasury Sec. Yellen: The Fed rate cut is very positive sign for the economy
54 minutes agoGBP/USD tests 1.33 as Greenback weakness prevails
2024.09.20 08:03USD/CAD softens near 1.3550 on bearish US Dollar, investors await BoC's Macklem speech
2024.09.20 08:01Bank of Japan set to keep rates on hold after July's hike shocked markets
2024.09.20 08:00
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
Japan's National CPI climbs 3.0% YoY in August, Core CPI rises as expected
Japan's National Consumer Price Index (CPI) climbed 3.0% YoY in August, compared to the previous reading of 2.8%, according to the latest data released by the Japan Statistics Bureau on Friday, Further details unveil that the National CPI ex Fresh food arrived at 2.8% YoY in August versus 2.7% prior.
New
2024.09.20 08:32EUR/USD grapples with higher ground as Fed cuts weigh on Greenback
EUR/USD found the high end on Thursday, holding fast to the 1.1150 level, though most of the pair's bullish momentum comes from a broad-market selloff in the Greenback rather than any particular bullish fix in the Euro.
New
2024.09.20 08:32US Treasury Sec. Yellen: The Fed rate cut is very positive sign for the economy
US Treasury Secretary Janet Yellen said on Friday that the US Federal Reserve (Fed) rate cut is very positive sign for the US economy.
New
2024.09.20 08:12GBP/USD tests 1.33 as Greenback weakness prevails
GBP/USD found a fresh 30-month high bid on Thursday, with a broad-market selloff in the US Dollar sparking a risk bid in Cable and bolstering the Pound Sterling.
New
2024.09.20 08:03USD/CAD softens near 1.3550 on bearish US Dollar, investors await BoC's Macklem speech
The USD/CAD pair attracts some sellers near 1.3560, snapping the two-day winning streak during the early Asian session on Friday.
New
2024.09.20 08:01Bank of Japan set to keep rates on hold after July's hike shocked markets
The Bank of Japan (BoJ) is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review.
New
2024.09.20 08:00Silver Price Forecast: XAG/USD surges as Fed rate cut spurs rally toward $31.00
Silver climbed sharply during Thursday's North American session, printing solid gains of over 2%, and closed at around $30.77.
New
2024.09.20 07:14NZD/USD Price Analysis: Bulls attempt to retake the 20-day SMA, outlook promising
On Thursday, the NZD/USD pair rose to 0.6239, above the 20-day Simple Moving Average (SMA) which served as a strong resistance in the last sessions.
New
2024.09.20 06:53Australian Dollar on the rise amid Greenback weakness
The AUD/USD rose by 0.70% to 0.6815 in Thursday's session. This marks the fourth consecutive session of gains for the AUD/USD, as the Greenback continues to weaken in the wake of the Federal Reserve's (Fed) 50-basis-point rate cut.
New
2024.09.20 05:30USD/JPY Price Forecast: Clings to gains after failing to clear 144.00
The USD/JPY held on to gains following Wednesday's Federal Reserve decision but traded well below its daily peak of 143.94 as the Greenback registered losses.
New
2024.09.20 05:23Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
