The pair USD/JPY plunged more than 4% on Tuesday, the biggest drop since October 1998. The economists at MUFG Bank They believe that the pair could extend its fall to 120.
The yen is now the G10 currency that has fallen the most since October 21
“Governor Kuroda expressed reservations about the sustainability of the rise in inflation and predicted that it would recede next year.”
“The yen has gained 15% against the dollar since the close on October 20 and, if it holds, will act as a powerful disinflationary force next year. It will certainly help further shield Japan from global price inflation. of energy.”
“The yen is likely to remain under upward pressure and positioning sell-off risks as the end of the year approaches could cause USD/JPY to further notable declines to 120.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
