- November 21, 2024
- 1 second ago
USD/JPY: Dollar Chases ¥149 as Bank of Japan Signals Slow Move Away from Easy Policy
Bank of Japan Deputy Governor said officials don’t expect easy-money conditions to change too much after the end of negative rates.
The USDJPY pair took off in early Thursday deals after a Bank of Japan official dampened traders’ hopes of a major shift in monetary policy. The exchange rate was on its way to cross the ¥149.00 threshold and was eyeing a 10-week high after having moved mostly sideways for the past month.
Bank of Japan Deputy Governor Shinichi Uchida said in a press release that Japan’s central bank is not looking to make any drastic moves in the near future. His comments signaled a gradual move away from the current negative interest rate environment as a way to maintain a stable economy.
In other words, the easy-money policy will continue to provide accommodative conditions for a considerable time span. In response, traders were quick to offload their long bets on the Japanese yen. The Asian currency was among the biggest losers of 2023 while the US dollar reigned supreme.
