The devaluation of the JPY has paused. Overview for 27.06.2023

27 июня 2023 - Fx4News

The Japanese yen has taken a pause in the devaluation process against the US dollar. The current USDJPY quote is 143.47.

The news flow is neutral, and market reactions are subdued. However, there is something worth paying attention to.

Japan has reappointed Masato Kanda as vice finance minister for international affairs for another year. He is known for coordinating interventions worth 65 billion USD last year when the yen was collapsing. Japan is thereby sending an unambiguous signal that it is ready to apply the currency intervention mechanism where it is deemed necessary.

There is a strong sentiment amongst investors that Japan will refrain from currency interventions unless the yen reaches the 150 JPY per dollar threshold. Devaluation is ongoing, but it seems that its pace no longer frightens anyone.