The Japanese yen, paired with the US dollar, paused in the morning but has since resumed its decline. The current USDJPY exchange rate stands at 154.78.
Today, the USDJPY pair reached a new 34-year high of 154.80, prompting further commentary from Japanese policymakers within the framework of verbal interventions. Japan's finance minister, Shunichi Suzuki, referred to last week's meeting between the US, Japan, and South Korea, saying that this trilateral meeting laid the groundwork for addressing the yen's high volatility issue. Suzuki's statement today became the strongest warning to the market.
The Bank of Japan's next meeting will be held this week, but no miracles are expected from it. The quarterly forecast on the economy and prices will be of interest. In this release, the CB should show how the yen's devaluation has influenced the economic system.
Last week, BoJ governor Kazuo Ueda stated that the regulator might raise interest rates again if the yen's weakness induces sustainable growth due to higher import costs.