The yen continues to retreat. Overview for 20.09.2023

20 сентября 2023 - Fx4News

The Japanese yen in pair with the US dollar remains in a weak position. The current USDJPY exchange rate stands at 147.82.

Much of the market's attention is riveted on the potential interventions by the Bank of Japan and the government. Yesterday, one of the monetary policymakers, Takehiko Nakao, acknowledged the necessity for regulatory intervention.

According to Nakao, an extended period of accommodating monetary policy could lead to further weakening of JPY positions.

Nakao had prior experience with currency interventions back in 2011.

In 2022, Japan allocated around 9 trillion yen (60.88 billion USD) to intervene in currency fluctuations and put a halt to the yen's depreciation.

Presently, the JPY is facing pressure, partly due to the strengthening position of the US dollar.