Japanese Yen plunges to 20-year low
Central bank Japan (BOJ) on April 28 continued the strong slide of the yen, touching 130 yen/USD, after the BOJ decided to keep the monetary easing policy unchanged, despite the weakening of the yen and inflationary pressures. growing increasingly.
The BOJ announced no changes to its yield curve control program. The decision was expected by economists, despite speculation that the BOJ might act as the yen recently fell to a two-decade low.
The Bank of Japan also said it will conduct fixed-rate bond purchases every business day as a determination to protect its 10-year bond yield target to stimulate the economy, according to Bloomberg.
Immediately after this decision, the yen weakened strongly against the dollar, falling from 128.67 yen/USD to 129.83 yen/USD. By the afternoon of April 28, the yen fell further, surpassing the 130 yen/USD mark – the lowest level in 20 years.
In updated price forecasts, the BOJ raised its inflation forecast closer to its 2% target for the year starting this month due to the impact of energy prices, and forecast a decline in 2023.
Bank of Japan Governor Haruhiko Kuroda and his board have poured cold water on speculation that they will have to adjust policy to help prevent the yen from weakening further and ease pressure. force on the yield target at the lowest level.
This is in stark contrast to the fact that the US Federal Reserve (FED) and other central banks are racing to raise borrowing costs to curb rising prices. The widening interest rate differential between the Fed and BOJ is pushing the yen lower against the dollar, making it difficult for businesses and households.
The BOJ remains committed to stimulating a fragile economy, while the government of Prime Minister Fumio Kishida trying to cope with the impact of rising food and energy prices. To date, the Japanese Yen is experiencing its longest losing streak in at least half a century since early April.
at Blogtuan.info – Source: laodong.vn – Read the original article here
