Yen Continues Falling: Market Review, 25.09.2018

The Japanese yen is losing ground against the US dollar, now trading around 112.93. The BoJ meeting minutes came earlier today, with so,me interesting news in it. A few BoJ board members said focusing on extremely mild monetary policy 'weak points' was necessary. This is kind of surprise, as these drawbacks have been previously pointed out by many, but not by the central bank itself.

According to the minutes, the July meeting saw some members vote for keeping flexible control over the asset yields, as it may help the market in general in the long term. Many monetary politicians are meanwhile sure the BoJ should work more in order to achieve the inflation target at 2%.

Special attention was dedicated to the yield volatility, as it may fluctuate twice as more active compared to the standard range. This should be taking into account when regulating asset buyouts.

The BoJ governor Haruhiko Kuroda mentioned in his speech that working out a sustainable inflation trend requires more time than anticipated before. Nothing certain may be said about the QE right now, with the most important thing being keeping the rates low for a long. According to the BoJ governor, the inflation is rising, which is positive for the Japanese economy.

The yen, however, hardly reacts to any domestic news, as the market participants are busy chasing the risks.