JPY still holds on. Overview for 01.04.2024

The Japanese yen, paired with the US dollar, has stabilised near the lows. The current USDJPY exchange rate stands at 151.35.

The situation around JPY remains tense because all movements continue near the levels of the last intervention. At the verbal level, everything has already happened, yet the authorities do not rush at intervening financially.

The Japanese Minister of Finance Shunichi Suzuki shared today that market movements in the yen appear speculative, not fully reflecting fundamental economic indicators. He once again warned the market from excessive activity against the yen and voiced the government’s readiness to watch and intervene.

According to Suzuki, current JPY movements are explained by various factors, including the Bank of Japan’s decision to put an end to the age of negative interest rates, the country’s current account balance, geopolitical risks, and price movements.

Mind the fact that the Bank of Japan’s interest rate remains near the zero mark. The spread between the rates of the BoJ and Federal Reserve is excessive, which gives investors the reason to sell the yen.