The Japanese yen, paired with the US dollar, is gradually reaching equilibrium. The current USDJPY exchange rate stands at 147.97.
At the beginning of the week, the yen hit a two-month low against the USD after the US dollar began to rally. This development occurred as investors reassessed prospects for the Federal Reserve’s future actions.
However, the Fed’s firm stance and economic data from the US continue to support the US dollar.
The market remains divided on the Bank of Japan’s monetary policy prospects. It would be beneficial to abolish negative rates already this year. However, deadlines for such a decision are continually being extended due to released statistics and events. Consequently, the BoJ postponed considering the possibility of tightening monetary policy following January’s earthquake in the country.