Many analysts think that the yen and renminbi could be the ones to watch in 2026 and both for similar valuation-type reasons.
The Bank of Japan (BoJ) is expected to lift the policy rate by 25-bps at Friday’s meeting. Many of the rate hikes in the past have seemingly caused substantial rallies...
The US dollar has started the week on a softer note. It is a theme that could endure as the currency faces a triple threat in coming weeks.
Once again, Japanese policymakers are becoming frustrated by the weakness in the yen. Intervention could be just around the corner but, if past experience is anything to...
The US dollar might spend many decades plunging in the same way as the yen has done?
The yen has slumped in the last week as incoming LDP leader, and likely new PM, Takaichi revived memories of former PM Abe’s stimulus-laden period in office that saw the...
It appears a well-accepted fact that the plunge in the US dollar earlier this year came about because global investors in US assets decided to increase their hedge...
Japan’s ruling LDP, in conjunction with its junior partner Komeito, has just lost its majority in the Upper House thanks, in part, to the rise of the nationalist...
The FED seems set to stay on hold for the foreseeable future but most other G10 central banks should continue to ease.
Many analysts’ key currency call for this year is that the yen will go from being the worst performing G10 currency over the past couple of years, to being the best in...
A degree of divergence seems likely to creep into G10 monetary policy as the Fed pauses while those that have been easing carry on, and those that have not started to...
Economic recovery and an inflation rate close to target should give reason for the Bank of Japan (BoJ) to lift policy rates further. However, the BoJ would need to...
In the past couple of days, we’ve heard Bank of Japan and Bank of England governors suggest that policy rates will likely head for “neutral” as policy is adjusted. The...
The BoJ almost certainly won’t hike rates again this week, but this need not necessarily rule out another painful carry-trade unwind.
As a relative price, currencies move most when there is divergence between countries, not convergence.
At present, there isn’t any official data to confirm MoF/BoJ’s FX intervention, but it looks as if the Ministry of Finance/Bank of Japan intervened to buy the yen again...
The Standard Bank expected the yen’s recovery would remain slow and possibly require more FX intervention.
There’s still some very low funding rates out there (the yen), while prior monetary policy tightening elsewhere means that policy rates are high and interest rate...
FX intervention usually meets with a sceptical response. It has been no different for the Bank of Japan as its recent efforts to strengthen the yen have been dismissed...
Incessant yen weakness seems to have finally snapped the patience of the Japanese authorities as it looks as if the Bank of Japan intervened on behalf of the Ministry of...
Sooner or later, it looks as if Japanese policymakers could intervene in the FX market by using a three-step process.
The Japanese Ministry of Finance and the Bank of Japan (BoJ) seem to be readying themselves for currency intervention as the yen hits its lowest level in 34-years...
VN
EN