The Yen is even weaker. Overview for 20.10.2022

October 20, 2022

Article By RoboForex.com

The Japanese yen paired with the US dollar has fallen to another low in more than 30 years. The current quote in the USDJPY is 149.94. The devaluation of the yen is “in full swing” and this is now really scaring the monetary authorities in Japan. The situation is clearly spiralling out of control.

This morning the Central Bank announced its readiness to urgently purchase USD 667 million worth of government bonds in order to stabilise the debt market. The decision was probably taken after the yield on 10-year government bonds rose to 0.225%, which exceeded BoE targets.

The Japanese Prime Minister estimates that the economy is facing external risks and realising the consequences of foreign developments. The Japanese authorities are now preparing a stimulus package for the economic system and are likely to decide on the level of spending.

Earlier, the monetary watchdogs had carried out a massive 2.84 trillion yen currency intervention. But these measures had only a short-term effect.

Article By RoboForex.com


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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

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