Reported about 1 year ago
Recent weakness of the Japanese Yen continues as the exchange rate against the US Dollar falls below 161, hitting a new low since 1986. Despite global central banks shifting towards rate cuts, the Bank of Japan (BOJ) went against the trend by raising rates and ending negative rates in March. Market anticipation of bond purchase reduction was delayed to the end of July, reflecting concerns over Japan's weakening economic data. Speculators have increased bets on the Yen's decline, with leveraged funds entering with more short positions. The likelihood of the Yen rebounding is low unless BOJ takes decisive action or the Federal Reserve initiates rate cuts.
Source: YAHOO