The Japanese yen, paired with the US dollar, has reversed course and is now strengthening. The current USDJPY exchange rate stands at 149.80.
Bank of Japan board member Hajime Takata urged the central bank to start discussing the potential end of its ultra-loose monetary policy. He emphasised the importance of considering all scenarios, including negative ones and monitoring domestic interest rates and bond yields.
Flexibility in the withdrawal of stimulus measures is crucial to maintain the effects of the accommodative monetary policy.
The yen has been under tremendous pressure this year due to the Bank of Japan’s commitment to its soft monetary strategy. This comes at a time when the world’s major central banks are adopting the stance of restrictive interest rates.