Since the beginning of this week, the dollar/yen has shown a sharp rise of about 4 yen. Since the beginning of this year, the price has risen by about 30 yen. The yen is at a historic low.
In addition to the inflationary pressure in the process of recovering from the pandemic, inflationary pressure is increasing worldwide due to the energy crisis caused by the war in Ukraine since February 24th. Against this backdrop, central banks and governments around the world are desperately fighting inflation to protect people’s livelihoods (including the meaning of political stability).
“However, the Bank of Japan will not move.” Rather, they seem to be moving in the direction of strengthening and maintaining ultra-loose policies. Chief Cabinet Secretary Matsuno said today that the depreciation of the yen is good for inbound tourists.
Following yesterday’s announcement by the Bank of Australia, the Bank of Canada will announce its policy interest rate today. Market expectations for a 0.75 percentage point hike to 3.25% prevailed. Day after day, the gap between the monetary policy stances of the BOJ and central banks overseas will be shown. The ECB Governing Council is scheduled for tomorrow.
Although Japanese dignitaries have made remarks to restrain the yen’s depreciation, it is assumed that the yen’s depreciation will continue to be unlikely to come to a halt.
USDJPY’s buying stance continues.