JPY: no limits to the decline. Overview for 26.10.2023

The Japanese yen against the US dollar is falling at each time increasing speed. The current USDJPY exchange rate stands at 150.45.

Well, USD has secured above the psychologically important level of 150.00. Earlier we discussed that this mark might have lost its significance because the Bank of Japan was giving no signals of being ready for currency interventions.

Today Ministry of Finance Shunichi Suzuki has warned speculators about making hasty decisions in the currency section. He noted that the authorities are keeping an eye on currency movements. No direct comments were given about the probability of interfering with currency trades.

General inflation in Japan in September has dropped to its annual low at 3%, while the Core CPI has slowed down to 2.8%. This is the bottom of 13 months. However, the index remains above the CB’s target of 2%.

The yen is falling due to the colossal difference between the interest rates of the Bank of Japan and the US Federal Reserve System.