The Japanese yen, paired with the US dollar, declines again. The current USDJPY exchange rate stands at 155.82.
The market speculates about the reason behind the yen’s strong movements this week. Although the Japanese authorities have not officially confirmed interventions to support the national currency, investors are convinced that there were financial injections, and twice.
One of Japan’s monetary policymakers Masato Kanda stated that the government would disclose data on possible interventions at the end of next month.
Financial injections are likely to have driven the yen’s short-term rally. Such interventions will not produce a significant effect as the main reason for JPY’s weakness is the difference between the interest rates of the Bank of Japan and the US Federal Reserve. Nothing has changed on this issue.
