JPY is experiencing significant stress. Overview for 15.06.2023

The Japanese yen paired with the US dollar remains in a devaluation zone. The current USDJPY quote is 141.20.

The difference in interest rates between the Bank of Japan and the US Federal Reserve System, although not increasing as rapidly as before, still leaves the JPY vulnerable.

Most economists surveyed by Reuters believe that the Japanese government and the Central Bank will take measures to stop the yen's fall when the US dollar reaches 145.00. Tensions are building up on the eve of the Bank of Japan's new meeting scheduled for Friday.

Approximately 96% of respondents are convinced that the BoJ will not change the structure of its monetary policy now. At the same time, about half of them believe that the fine-tuning of the soft programme might start, including adjustments to the yield curve scheme (YCC). This might happen in July or September.

Many believe that BoJ intervention will begin when the US dollar reaches the 145.00 yen level. However, questions arise here: for example, about how the authorities are planning to support manufacturers who find themselves in a difficult situation due to the weakening of the national currency.