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Yen sinks to 40-year low, sparking intervention chatter and market ripples
markets9 days ago

Yen sinks to 40-year low, sparking intervention chatter and market ripples

The Japanese yen dropped to its weakest level in about four decades against the U.S. dollar as traders bet the Fed will keep rates high amid an oil-price shock from the US-Israel-Iran conflict. The Bank of Japan’s still-lower rates help explain the gap, and Tokyo has intervened before, though the yen’s slide continues. A larger move could affect U.S. Treasuries, currency flows, and carry trades, with implications for Japan’s import costs and broader global markets.

via CNN|
#boj#carry-trade#dollar
BoJ ties yen moves to higher inflation risk, signaling possible faster rate hikes
economy21 days ago

BoJ ties yen moves to higher inflation risk, signaling possible faster rate hikes

BoJ Deputy Governor Himino said the bank will continue raising rates with pace guided by the evolving baseline and risks; underlying inflation is nearing 2% but faces upside risk, and yen depreciation now has a larger inflation impact due to changes in corporate behavior, giving the BoJ room to accelerate hikes if FX weakness persists while stressing that policy does not target exchange rates; markets watched USD/JPY spike toward 161.8 before reversing.

via investingLive|
#boj#economy#fx
Yen slides toward 1980s lows as Tokyo signals decisive action
business-markets21 days ago

Yen slides toward 1980s lows as Tokyo signals decisive action

The yen weakened toward four-decade lows, trading around ¥161 per dollar and briefly hitting ¥161.80 in New York before trimming losses to about ¥161.3–¥161.4 in Tokyo. Finance Minister Satsuki Katayama warned that decisive action could come if the slide continues, echoing prior intervention that cost the government roughly ¥11.7 trillion. The Bank of Japan raised rates to 1% for the first time since 1995, but the yen’s weakness persisted amid expectations for further BOJ moves and strong US rate-cut pressure.

via The Japan Times|
#boj#business-markets#forex
Japan's yen defense runs into the gravity of global rates
business2 months ago

Japan's yen defense runs into the gravity of global rates

Japan reportedly intervened in the yen during Golden Week after it slipped past 160 per dollar, with a second suspected move in early May; the yen jumped briefly but subsequently weakened again. Analysts say such interventions offer only temporary relief against a sustained pull from a wide interest-rate gap with the U.S. and rising import costs, and IMF notes that Japan can only use a few more interventions before affecting its free-floating status; the BOJ faces a policy dilemma between raising rates to defend the yen and supporting growth.

via CNBC|
#boj#business#currency-intervention
Energy jitters push Japan's core inflation higher as BOJ decision looms
economy2 months ago

Energy jitters push Japan's core inflation higher as BOJ decision looms

Japan's core inflation rose to 1.8% in March, with core-core at 2.4% and headline at 1.5%, still below the BOJ's 2% target as energy-price worries from the Iran conflict mount. The government has rolled out fuel subsidies and is considering capping gasoline at about 170 yen per liter, and energy costs fell 5.7% in March. Analysts warn higher energy prices could lift inflation toward 3% by 2026 if subsidies aren't expanded, while the BOJ is expected to hold rates at 0.75% at the April meeting. The economy posted modest growth in late 2025, prompting revisions to growth and inflation outlooks.

via CNBC|
#boj#economy#energy-prices
Weak Yen Spurs BoJ March Rate Move, Says Former Policymaker
economy4 months ago

Weak Yen Spurs BoJ March Rate Move, Says Former Policymaker

Former BOJ board member Makoto Sakurai says the central bank could raise rates as soon as March if the yen slides, with a potential 25 basis-point hike and possibly another in 2026–27 to push the policy rate toward 1.75%. He warns faster tightening could strain banks, though inflation remains above target and wage growth could justify action. Economists expect about 1% by end-June, and the next policy meetings are March 18–19 and April 27–28.

via Reuters|
#boj#economy#inflation
Japan’s inflation cools to 1.5% as BOJ targets remain in play
world4 months ago

Japan’s inflation cools to 1.5% as BOJ targets remain in play

Japan’s January headline inflation fell to 1.5%, the lowest since March 2022 and ending 45 months of inflation above the BOJ’s 2% target. Core inflation was 2.0% and core-core 2.6%, with falls in fresh food, meat and energy prices driving the slowdown. GDP grew 0.1% in Q4, narrowly avoiding recession. The BOJ upgraded its 2026 outlook to 1.9% core and 2.2% core-core inflation and expects inflation to dip below 2% in early 2026 as food prices stabilise and tax relief/support measures persist. Despite slow price pressure, rate hikes are anticipated, with a June move to about 1% likely after wage data.

via CNBC|
#boj#core-core#cpi
Japan posts 0.1% Q4 growth, narrowly dodges recession but misses forecasts
economy4 months ago

Japan posts 0.1% Q4 growth, narrowly dodges recession but misses forecasts

Japan's economy grew 0.1% in Q4 2025, narrowly avoiding a technical recession (annualized +0.2%) but missing economists' 0.4% forecast; private consumption led the gain while exports and public spending lagged, and the BOJ lifted its 2026 growth outlook. The release comes as Tokyo and Washington push a $550 billion investment pledge under their trade deal, with currency moves and domestic politics shaping sentiment.

via CNBC|
#boj#economy#gdp
Fed Nudge Signals Narrow Path to Yen Rescue, but Joint Action Still Murky
business5 months ago

Fed Nudge Signals Narrow Path to Yen Rescue, but Joint Action Still Murky

The New York Fed’s rate check aimed at stabilizing the yen signals closer U.S.-Japan coordination but a direct, joint intervention remains unlikely for now due to U.S. domestic considerations and the potential costs of Japan selling Treasuries; even as intervention thresholds ease, the BOJ’s cautious stance and political hurdles keep a lasting yen-rescue option uncertain, leaving markets watching for further signals.

via Reuters|
#boj#business#currency-intervention