Re: Yen keeps going from strength to strength!
Posted: Sat Feb 22, 2025 1:45 pm
My take is that BOJ is prepared to buy bond to keep the rates hike on an even keel. After all, closing the US-Japan rate gap too quickly might hurt the economy from a too strong a yen. Makes sense to me. Steady as she goes...
The yen has already strengthened by more than 5% since the end of last year. I think that the BOJ is trying to stave off potential criticism of currency manipulation from Trumpland while keeping interest rates manageable for Japanese industry and government, and the exchange rates from reprising the disastrous scenario of those Plaza Accord years.
The yen has already strengthened by more than 5% since the end of last year. I think that the BOJ is trying to stave off potential criticism of currency manipulation from Trumpland while keeping interest rates manageable for Japanese industry and government, and the exchange rates from reprising the disastrous scenario of those Plaza Accord years.