The Japanese yen
The Japanese yen rose to around 149.3 per dollar on Thursday, but remained close to its lowest levels in 11 weeks as investors reacted to disappointing trade figures.
Data showed that Japan’s trade balance shifted to a deficit in September as exports unexpectedly declined, while imports growth slowed. On the monetary policy front, Bank of Japan board member Seiji Adachi said earlier this week that conditions are already in place to normalize monetary settings, but emphasized that the central bank must raise interest rates at a “very moderate” pace.
He warned that the BOJ must avoid a drastic change in policy given uncertainties over the global economic outlook and domestic wage growth. Externally, the yen continues to face pressure from a rallying dollar on bets that the Fed will be less aggressive in cutting rates. The so-called Trump trade also lifted the dollar as his policies are seen as inflationary, which would prevent the Fed from lowering rates further.Cay)
Source: Trading economi
