Select Language

Portfolio

Share your portfolio and performance in real time
Events & contests

Events and contests held by retail brokers around the world

Japan's Kato: Will take appropriate action against excessive moves

World FX news

Home

Breaking news

Japan's Kato: Will take appropriate action against excessive moves

New

2024.12.20 10:20

Japan's Kato: Will take appropriate action against excessive moves

2024.12.20 10:20

Japan's Finance Minister Katsunobu Kato said on Friday that he is concerned about the recent foreign exchange move, including those driven by speculation. Kato added that he will ake appropriate action against excessive moves.

Key quotes

Sees stable FX movement as desirable, reflecting fundamentals.

Sees abrupt, unilateral movements in foreign exchange market.

To take appropriate action against excessive market movements.

Expresses serious concern over currency fluctuations.

Market reaction

At the time of writing, USD/JPY was up 0.06% on the day at 157.41.

Japanese Yen FAQs

What key factors drive the Japanese Yen?

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.

How do the decisions of the Bank of Japan impact the Japanese Yen?

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 BoJ ultra-loose monetary policy between 2013 and 2024 caused the Yen to depreciate against its main currency peers due to an increasing policy divergence between the Bank of Japan and other main central banks. More recently, the gradually unwinding of this ultra-loose policy has given some support to the Yen.

How does the differential between Japanese and US bond yields impact the Japanese Yen?

Over the last decade, 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 supported a widening of the differential between the 10-year US and Japanese bonds, which favored the US Dollar against the Japanese Yen. The BoJ decision in 2024 to gradually abandon the ultra-loose policy, coupled with interest-rate cuts in other major central banks, is narrowing this differential.

How does broader risk sentiment impact 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.

Created

: 2024.12.20

Last updated

: 2024.12.20

GBP/USD Hits 1.2550 amid low trading volume
2024.12.25 01:07
USD/CAD wobbles around 1.4400 amid quiet trading session ahead of Christmas Day
2024.12.24 22:58
US Dollar trades flat as traders make way to the Christmas table
2024.12.24 21:31
Crude Oil volatility settles down ahead of API stockpile data
2024.12.24 20:45
AUD/USD Price Forecast: Sees fresh downside below 0.6200
2024.12.24 20:22
Silver Price Forecast: XAG/USD drops to near $29.50, facing pressure from Fed's moderate hawkish stance
2024.12.24 19:34

Writer

FXStreet

Financial media

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?

Yes

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.

Send

Thank you for your feedback.

PBOC leaves Loan Prime Rates unchanged in December

PBOC sets USD/CNY reference rate at 7.1901 vs. 7.1911 previous

Most viewed

Silver Price Forecast: XAG/USD drops to near $29.50, facing pressure from Fed's moderate hawkish stance

Silver price (XAG/USD) falls to near $29.30 in Tuesday's European session, though it remains inside Monday's trading range amid thin trading volume due to holidays on Wednesday and Thursday on account of Christmas Eve and Thanksgiving Day.

New

2024.12.24 19:34

Pound Sterling consolidates against USD in holiday-curtailed week

The Pound Sterling (GBP) trades sideways above the psychological support of 1.2500 against the US Dollar (USD) in Tuesday's London session.

New

2024.12.24 18:43

Silver price today: Silver broadly unchanged, according to FXStreet data

Silver prices (XAG/USD) broadly unchanged on Tuesday, according to FXStreet data.

New

2024.12.24 18:30

GBP/JPY remains on the back foot below 197.00 amid intervention fears

The GBP/JPY cross struggles for a firm intraday direction and oscillates in a narrow trading band, below the 197.00 round-figure mark through the first half of the European session on Tuesday.

New

2024.12.24 18:05

Disclaimer:

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

I agree