JPY is getting weak fast. Overview for 18.01.2023

The Japanese yen against the US dollar has dropped noticeably. The current quote is 130.91.

Today the BoJ had a meeting where they decided to keep the ultra soft monetary policy in force. The interest rate remained at -0.10% as expected. In the parallel universe, there are market expectations that the CB corrects its monetary approach, letting the interest rate grow.

As mentioned in the BoJ statement at the closing of the meeting, the Japanese economy will probably recover over the scheduled period. However, the same document says that the pressure on the yen might remain around because of high commodity prices and the slow-down of global economies. After such statements of the BoJ, the yen dropped.

In December, the regulator attracted attention by shocking interventions and the decision to increase the return on 10-year JGBs. However, in January interventions became random and lost significance.