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The yen is in recovery state following comments by the Japanese authorities

12 Feb,2024
The yen is in recovery state following comments by the Japanese authorities

On Monday, the Japanese yen rose against a basket of global currencies, continuing its gains for the second day in a row against the US dollar, with continued recovery from the lowest level in three months.

This rise comes amid intense comments from officials of the financial and monetary authorities in Japan about currency movements in the exchange market, and about the future of monetary policy and negative interest rates.

On Friday, the yen achieved an increase of about 0.1% against the dollar, the first gain in the last three days, after recording earlier in trading the lowest level in three months after it had lost 0.65% against the dollar last week.
The yen lost 0.65% against the dollar last week, the second weekly loss in a row, due to the rise in yields on ten-year US Treasury bonds, which renewed concerns about the yield gap between Japan and the United States.
  There were many comments by members of the Bank of Japan, as the Governor of the Bank of Japan, Kazuo Ueda, said last week that there is a great opportunity for easy monetary conditions to continue even after the central bank ends the negative interest rate policy, in addition to the Deputy Governor of the Bank of Japan, who said On Thursday, it is difficult to imagine that the central bank will continue to raise interest rates quickly even after ending the negative interest rate policy.

The yen is now about to release the quarterly gross domestic product as an indicator of the health of the Japanese economy, in addition to the shadows that it may cast on the currency according to the readings, which if they come higher than expected, which are levels of 0.3% and above, are considered positive for the Japanese yen currency. and lower ones may be considered negative for the currency.


*All data provided is intended for educational or informational purposes only and should not be considered investment advice.

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