Yen hits 2-month high of 154 against dollar on BOJ rate hike speculation

Don't think for a second that the government does NOT support this devaluation of the Japanese Yen. They are only doing this in order to help the mega corporations, that are paying them handsomely, to have even more earnings due to exports.

If you think they care about the struggles of the local population, which has to face huge prices increases, tax hikes, and overall rampant inflation due to the currency crash, think again. They know they will still got the vote in any case, since Japanese people are too scared and cowardly for a big change in leadership.

It tells us how undervalued the yen must be when the merest hint of a possible rate hike is enough to light a rocket under the currency. Yen weakness has been a boon to inbound tourism, exporters, J companies repatriating profits back here, and not least the Government cashing in some of its massively appreciated foreign holdings.

Based on dollar weakness

162 by the end of 2024 still holds.

Currency markets aren't totally logical and they can react wildly to the least thing. A potential interest rate hike would actually be fairly significant. I think the dollar's falling a bit due to the changed US election picture too, at least for now.

The volatility in JPY-USD is crazy and can't have anything to do with fundamentals. The current uptrend already includes a correction from 148 to 128 yen at the end of 2022. Eight months later it was back at 148 again. Unless you are actively trading JPY-USD, this doesn't do anyone any favours. Imagine setting up to import at 128 and then find out you're paying 148 eight months later when your business starts to take off.

speech that the BOJ must clearly communicate how it will normalize monetary policy, including gradual interest rate hikes.

Well duh.

The BOJ is bankrolling the governments deficits by printing money, so how about the government specify how it is going to stop adding 40 trillion yen of annual deficit to the quadrillion yen of debt already racked up, before making out like the BOJ has the ball in its court?

The yen had been depreciating sharply against the dollar, with the BOJ's first interest rate hike in 17 years in March doing little to reverse the currency's weakening trend

I can’t say I expect much different in the wake of a possible upcoming hike either.

Looks like a good time to sell more yen is nigh

The central bank is scheduled to hold a policy-setting meeting next Tuesday and Wednesday, at which the Policy Board is expected to discuss how much it should reduce government bond buying.

That’s the big issue… if they stop printing so much money, as the big whale in the JGB market, long term rates are going up - and the value of the assets on the BOJ’s balance sheet down… as well as the liabilities on the other side (the yen they print)

How much money did Japan waste with the intervention this time. Clearly they are still spending. The hike in interest will hurt the economy not help it and the yen isn’t weak now. It’s still overvalued.

WoodyLeeToday  06:19 pm JST

162 by the end of 2024 still holds.

An why would that be? I don't see any rational economic reason for that. If the FED cuts rate,and Japan nudges its rates up a bit.

@DanteKH

They are only doing this in order to help the mega corporations, that are paying them handsomely, to have even more earnings due to exports.

This I can agree on. Japan politicians inherit their political positions and continue to support the same corporations and receive hefty funding and kickbacks from these corporations.

since Japanese people are too scared and cowardly for a big change in leadership.

You misunderstand, the LDP have been in power for so long that they have had time to adjust the political arena to their favor. Japan has three houses. two upper houses and 1 lower house. the two upper houses are 6 year terms split by three years so they can continue to maintain a majority. and they can control what happens in the lower house just by voting or not voting on any law (laws that are not voted on must be resubmitted every session) ... Also they spread propaganda through state news papers and state TV that it isn't worth voting for anybody basically the lower the voter turn out the higher chance they have to win.. Japan rarely ever has more than a 45 - 50 % voter turnout. Furthermore the opposition parties are limited on the amount of time they are allowed to make themselves and their policies heard and state media rarely ever reports anything on them except when they do something wrong.

Is the BOJ a speculator?

It certainly is a currency manipulator though…