Japanese Yen Trades Lower As BoJ Says Tweaks In Policy Not An Exit
28 Dicembre 2022 - 05:34AM
RTTF2
The Japanese yen was lower against its major counterparts on
Wednesday, as the Bank of Japan Summary of Opinions from the
December meeting showed that the decision to widen the trading band
of 10-year Japanese government bond yield is not aimed to change
the direction of monetary easing.
The widening of yield band is not a step toward an exit from
monetary easing and the current accommodative policy stance should
be maintained through JGB purchases, the summary showed.
The functioning of bond markets has deteriorated, and if this
situation persisted, it could have a negative impact on financial
conditions such as issuance conditions for corporate bonds and
hamper the transmission of monetary easing effects.
In this circumstance, the bank decided that it would continue
with yield curve control, but expand the range of 10-year Japanese
government bond yield fluctuations from the target level, the
summary added.
Data from the Ministry of Economy, Trade and Industry showed
that Japan industrial production fell a seasonally adjusted 1.0
percent on month in November.
That beat expectations for a decline of 0.3 percent following
the 3.2 percent drop in October.
The yen dropped to an 8-day low of 161.45 against the pound,
from Tuesday's closing value of 160.54. On the downside, 165.00 is
possibly seen as the next support level for the currency.
The yen weakened to 8-day lows of 84.66 against the kiwi, 90.78
against the aussie and 99.30 against the loonie, from yesterday's
closing values of 83.78, 89.78 and 98.69, respectively. The yen is
seen finding support around 86.00 against the kiwi, 93.00 against
the aussie and 101.00 against the loonie.
The yen depreciated to 8-day lows of 134.40 against the
greenback, 144.46 against the franc and 142.94 against the euro and
held steady thereafter. At yesterday's trading close, the yen was
quoted at 133.46 against the greenback, 143.53 against the franc
and 141.99 against the euro.
Looking ahead, U.S. pending home sales for November will be
published in the New York session.
Grafico Cross Euro vs Yen (FX:EURJPY)
Da Feb 2023 a Mar 2023
Grafico Cross Euro vs Yen (FX:EURJPY)
Da Mar 2022 a Mar 2023
