The USD/JPY rallies to multi-year highs in the 151.000s on Wednesday on the back of broad-based US Dollar (USD) strength ahead of the Federal Reserve policy meeting and a “one and done” trade weakening the Japanese Yen (JPY).
USD/JPY rallies up to multi-year highs in the 151.000s – a historical BoJ intervention zone. The move is backed by USD strength as interest rates are seen remaining high in the US. The BoJ raised interest rates but this did not defend the Yen as expected, since Japanese rates remain extremely low. The USD/JPY rallies to multi-year highs in the 151.
This means they borrow in the Yen in order to buy other currencies which pay higher interest rate returns. “The broad-based view is that the gulf in interest rates between Japan and many other central banks in the G10 space means that the Yen will still be used as a funding currency in a low-volatility world.” Say analysts at ING.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Japanese Yen (USD/JPY) Rally Continues, BoJ Policy Decision ImminentTuesday’s Bank of Japan policy decision may see the central bank lift interest rates out of negative territory for the first time since January 2016
Read more »
BoJ Preview: Four scenarios and their implications for USD/JPYEconomists at TD Securities discuss the Bank of Japan (BoJ) Interest Rate Decision and their implications for the USD/JPY pair.
Read more »
USD/JPY holds strength above 149.00 ahead of BoJ-Fed policy decisionsThe USD/JPY pair exhibits strength above the crucial support of 149.00 in the early New York session.
Read more »
USD/JPY coils just above 149.00 ahead of BoJ, Fed actionUSD/JPY is churning chart paper just above the 149.00 handle as investors gear up for a central-bank-heavy week.
Read more »
USD/JPY outlook: Stands at the front foot ahead of BoJ and Fed policy meetingsUSDJPY has so far retraced over 50% of the recent 150.88/146.48 drop, in steep recovery that extends into fifth straight day.
Read more »
USD/JPY Sinks on Bets BoJ Will End Negative Rates Soon, US Inflation in FocusUSD/JPY extends losses on speculation that the Bank of Japan may be warming up to the idea of ending negative rates during its March monetary policy meeting.
Read more »