JPY manages to keep balance. Overview for 24.11.2023

The Japanese yen continues to maintain equilibrium against the US dollar. The current USDJPY exchange rate stands at 149.21.

In October, the general inflation rate in Japan accelerated to 3.3% y/y against 3.0% y/y in September. This is the highest level since last July.

Preliminary statistics published this week showed a slowdown in business activity for November, reaching an 11-month low. This is due to the persisting weakness in the production sector.

The Bank of Japan reaffirmed its intention to keep a soft credit and monetary policy when it held its October meeting. On that day, the regulator made minor adjustments to the yield curve control. This was considered by the market but proved insufficient for the currencies.

The BoJ’s interest rate remains negative at -0.1% per annum. Due to the colossal spread between the interest rates of the US Federal Reserve and the Bank of Japan, investors are turning away from the yen.