The Japanese yen is again declining against the US dollar. The current USDJPY exchange rate stands at 149.86.
Answering a question about the yen’s recent decline, Prime Minister of Japan Fumio Kishida said yesterday that it was desirable for currency rates to move stably.
Kishida emphasised that it is up to the Bank of Japan to decide on specific monetary policy means. However, the government and the central bank have always closely communicated in pursuing policies. This is what happens now.
In other words, Kishida signalled that everything is clear to everyone, but nothing will be done as it is impossible to foresee the implications.
This means that market forecasts suggesting that there will be no interventions in the short run are completely accurate.
No clear signals are coming from the statistics so far. A preliminary calculation of Japan’s manufacturing PMI in September showed that the figure remained at the previous level of 48.5 points. The forecast suggested an increase up to 48.9 points.