All articles tagged with #yen depreciation
At a Camp David cabinet meeting, a notepad visible to Reuters reportedly listed a plan to buy $5-10 billion in Japanese yen, fueling talk of potential US yen intervention as the currency weakens; reports also reference NY Fed actions and bank notices, though there’s no official confirmation of intervention since 2011.
Japan’s new Honebuto no Hoshin plan would channel about ¥370tn into 17 sectors by 2040 to lift growth above 1%, but investors worry about unfunded spending and debt sustainability after Japan’s debt-to-GDP peaked around 260%; markets have pushed up yields and the yen has weakened, with questions over funding sources and BoJ independence and whether the plan can outpace China, warning of a Liz Truss-style shock if financing details are missing.
The Bank of Japan's October summary reveals a division among its members regarding the timing of interest rate hikes. While some members advocate for further rate increases after evaluating the U.S. economic situation, others urge caution and a more gradual approach. This uncertainty has led to a slight increase in the USD/JPY exchange rate.