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More Japanese Yen Weakness May Prompt the Bank of Japan To Step In

April 4, 2024

Via: DailyFX

The Japanese Yen was a little weaker against the United States Dollar on Thursday, but the market seems to be extremely wary of pushing USD/JPY much higher. One major reason is that the Dollar is hovering around the 152-Yen level. Above that, investors suspect, the Bank of Japan’s hand might be forced against the weakness of its currency as it has been in the past. Finance Minister Shunichi Suzuki reportedly said on Tuesday that the ministry is watching market trends with ‘a high sense of urgency’, wanting to respond appropriately to ‘excessive’ currency movements. That’s extremely forthright central bank speak. He left the market concerned that 152 might be as far as USD/JPY will be allowed to go without Yen-buying intervention from the central bank.

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