Meanwhile, the rising cost of imports is causing food and energy prices to spike, impacting Japanese consumers’ pocketbooks. Speaking at a House of Councillors budgetary meeting on October 19, Bank of Japan Governor Kuroda Haruhiko warned that the yen’s rapid fall risked negatively impacting the Japanese economy and was “undesirable.” Although the government and BOJ remain highly concerned as the currency trends around the ¥150 line, Japan has yet to start aggressively buying yen despite seeing little possibility of the US government adjusting its monetary policy anytime soon.Ī weakening yen was once welcomed by Japan’s automakers and electronics manufacturers for its boost to repatriated profits earned overseas, but as they have moved more of their manufacturing capacity abroad, this impact has lessened. While the yen rebounded to the low ¥140 level immediately following the move, the effect quickly wore off, and the yen has continued to drop in October. The yen’s slide continues despite the Japanese government and the Bank of Japan intervening on September 22 for the first time in some 24 years with a spate of yen-buying and dollar-selling to keep the currency from weaking further. The last time the currency was at this level was in August 1990. FX Publications Inc is a subsidiary of IG US Holdings, Inc (a company registered in Delaware under number 4456365).The Japanese yen has depreciated at a blistering pace against the dollar over the last several months, falling below the ¥150 level briefly during trading in Tokyo on October 20. Registered Address: 251 Little Falls Drive, Wilmington, DE 19808. FXP is not responsible for any trading decisions taken by persons not intended to view this material. Any examples given are provided for illustrative purposes only and no representation is being made that any person will, or is likely to, achieve profits or losses similar to those examples. It is not a solicitation or a recommendation to trade derivatives contracts or securities and should not be construed or interpreted as financial advice. This information is made available for informational purposes only. Information presented by FXP should be construed as market commentary, merely observing economical, political and market conditions. residents or individuals domiciled in the U.S. Any and all information provided by FXP is not intended for use by U.S. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading.įX Publications Inc., abbreviated herein as FXP, (d.b.a DailyFX) is no longer a registered Introducing Broker with the Commodity Futures Trading Commission and is no longer a Member of the National Futures Association in the U.S. We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors.
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