The Japanese yen fell to a low of 145.90 against the dollar. In response, the Ministry of Finance stepped in. Nevertheless, according to economists at ANZ Bank, the yen will continue to suffer further weakness, which will take the USD/JPY pair towards the 150.00 zone.
The probability of a new intervention is low
“The Ministry of Finance intervened for the first time in two decades. In our opinion, the measure may help stabilize the yen in the short term, but it will not prevent further weakness of the Japanese currency.”
“The recent intervention by the Ministry of Finance seems to be caused by the rate of weakening of the yen, rather than by the fact that policymakers are targeting specific levels of the currency. Therefore, as long as the yen weakens gradually, and in an orderly manner, the probability of a new intervention is low in our opinion.”
“We expect USD/JPY weakness to top out at 150.00 as the spread between USD and JPY yields continues to widen, as the US Fed continues its aggressive hike path and the BoJ remains without changes”.
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
