The Japanese yen paired with the US dollar is retreating again. The current USDJPY exchange rate stands at 147.14.
The yen is once again hovering near ten-month lows as investors re-evaluate the BoJ’s monetary policy outlook following comments made by the central bank's governor.
Earlier, Kazuo Ueda mentioned that the central bank might end its long-standing practice of maintaining negative interest rates once a 2% inflation rate is achieved. The response from the financial community was unanimous: such a statement appears more formal and conditional than indicative of concrete steps towards normalising monetary policy.
In reality, Ueda's remarks were not provocative. He simply reiterated what has been known for some time: Japan's ultra-soft monetary policy is aimed at achieving a sustainable 2% inflation rate. When, or if, this goal is reached, the central bank will revisit the fundamentals of its monetary policy. It is a pure statement of intent in keeping with the best traditions of global diplomacy, implying little immediate action or change.