On the 28th foreign exchange market, the yen’s exchange rate fell more than 1% against the dollar at one point. The Federal Reserve Board (FRB) is expected to significantly raise interest rates next week after the Bank of Japan maintained its current monetary policy and accommodative stance during its monetary policy meeting on 27 and 28. The purchase dollars and the sale of yen intensified due to differences in monetary policy.
Bank of Japan Governor Haruhiko Kuroda said in a press conference after the meeting: “I don’t think there will be an exit or a rise in interest rates anytime soon.” The Bank of Japan announced on the evening of 28 that it plans to buy long-term government bonds in November, indicating that it will continue its easing position by increasing the number of purchases in the super long-term zone. The yen is depreciating further in response to the governor’s remarks and the announcement of the Bank of Japan’s plan to purchase government bonds.
YCC Will Not Urge Yen Depreciation – Governor Kuroda (3)
The yen temporarily fell to $ 1 = ¥ 147.86. Last week, the price hit a 30-year low, triggering what appeared to be government and Bank of Japan intervention.
Kyohei Morita, chief economist for the Japanese economy at Nomura Securities’ Financial and Economic Research Institute, said the basis for inflation did not spread to Japan at all, and the inflation rate was only about a third of that of Europe. and the United States. The Bank of Japan is still unlikely to tighten monetary policy, he said.
Original title:The yen weakens as the BOJ sticks to the ultra-low rate policy path(extract)
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