“The Fed’s decision could affect the movements of the currency and asset markets, so we must carefully observe the evolution of the situation“, stated on Thursday the deputy governor of the Bank of Japan (BOJ), Masayoshi Amamiya.
We expect the Fed to rein in inflation and deliver stable growth in the US.
This is important not only for the United States, but for the world economy.
The Fed’s decision will not directly affect BoJ policy, but it could have an impact on the Japanese economy and prices in the short term.
Recent declines in the yen may prompt more Japanese companies to relocate production to their country.
USD/JPY pulls back
After the comments, USD/JPY fading corrective pullback from the 3-week low marked earlier in the day. That said, the pair is now trading above 135.28, losing 0.9% on the day.
Source: Fx Street