Stock market analytics, financial forecasts

Get the latest economic news from ForexMart, including updates on the financial market, central banks' policy announcements, financial indicators, and other relevant news which can have an impact on the industry.

Disclaimer:  Information provided here to retail and professional clients does not contain and should not be construed as containing investment advice or an investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance.

The meeting of the Bank of Japan may lead to the intervention of the yen


April, 24 2024
watermark Economic news

According to the forecast of Bank of America, the Japanese yen may strengthen to a level above 155 yen per US dollar after the upcoming meeting of the Bank of Japan on monetary policy, scheduled for Friday, April 26. 


Analysts note that the Bank of Japan has already expressed concerns about how the weakness of the yen affects inflation in the country. And to support the national currency, the regulator needs to recognize that the current monetary policy is too soft, and prepare for the inevitable rate hike in June. Moreover, the final rate should be higher than the market's estimate.


Nevertheless, many consider it unlikely that the Central Bank will change its strategy, which could lead to a further weakening of the yen and potentially trigger a currency intervention. 


Bank of America believes that if Japan does not intervene when the exchange rate reaches 155 yen per dollar, the market may actively start buying dollars. And this, in turn, may push the USD/JPY exchange rate to around 160 yen per dollar, which will be a serious test for the regulator.


Feedback

ForexMart is authorized and regulated in various jurisdictions.

(Reg No.23071, IBC 2015) with a registered office at Shamrock Lodge, Murray Road, Kingstown, Saint Vincent and the Grenadines

Restricted Regions: the United States of America, North Korea, Sudan, Syria and some other regions.


© 2015-2024 Tradomart SV Ltd.
Top Top
Risk Warning:
Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.
Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.