JPY is at a ten-week low. Overview for 09.02.2024

The Japanese yen, paired with the US dollar, has fallen to its lowest point in ten weeks. The current USDJPY exchange rate stands at 149.40.

Investors seem to have abandoned all expectations about the Bank of Japan raising interest rates soon. At the same time, forecasts regarding the future actions of the US Federal Reserve remain relevant, assuming that May is the decision-making time.

On Friday, representatives of the Bank of Japan indicated a high probability of maintaining a soft monetary policy even after the central bank ends its negative interest rate phase.

This sentiment aligns with statements made by officials earlier this week.

The yen’s response to these comments appears exaggerated, propelled by the strength of the US dollar.