The JPY dropped and recovered. Overview for 09.03.2023

The Japanese yen against the US dollar dropped to the lows since 20 December. The current quote is 136.61.

The yen got under pressure and saw a decline to the local lows after the US dollar got supported by the signals of the Fed. The interest rate in the US might be growing faster than it had been expected. The JPY returned to devaluation as if there had been no lull.

The Japanese leading indicator index in January dropped to 96.5% from 97.2% earlier. At the same time, the Japan Eco Watchers Current index in February grew to 52.0 from 48.5 previously.

The discussions around the candidates for the head of the BoJ, indeed, attract attention. Most probably, the Bank of Japan will get under the management of Kazuo Ueda, a famous economist. The current head of the BoJ will resign on 8 April. The new one is expected to continue with the present credit and monetary policy, and for the yen this is more like bad news.