Yen heading for new lows. Overview for 17.10.2022

October 17, 2022

Article By RoboForex.com

Japanese yen paired with the US dollar has returned to a devaluation strategy. The current quote in USDJPY is 148.70. It is close to a 32-year high.

Morning statistics showed that Japan’s final volume of industrial production for August rose to 3.4% y/y, while a gain of 2.7% y/y was expected, as before. This is not a bad signal, although there are opinions that it has a purely local nature.

Japanese monetary policy makers have spoken this morning and said it is appropriate to continue monetary policy easing. The Prime Minister noted the possibility of taking action against currency speculation.

The yen’s devaluation is a consequence of the difference between the monetary strategies of the BoJ and the world’s leading central banks. The BoE is now probably the only one that implements economic stimulus and keeps the interest rate negative.

Article By RoboForex.com


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