USD/JPY posts first daily loss in 11 days. In the opinion of Commerzbank economists, the weakness of the Japanese yen has fundamental reasons.
The Bank of Japan maintains its ultra-expansive monetary policy
“While all other central banks tighten their monetary policy, The Bank of Japan maintains its ultra-expansive monetary policy, despite the fact that inflation has recently increased even in Japan. Not to the same extent as in the US or the eurozone, but inflation in Japan has nonetheless risen above the inflation target (2%).”
“Short-term price pressure isn’t going to let up for now, yen weakness is playing its part. Until monetary policy and the Bank of Japan’s approach change, yen weakness seems fundamentally justified.”
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.
