The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Amid a persistent policy divergence between Japan and the rest of the world, the Japanese yen weakened to a 40-year low against the US dollar, according to Reuters data. The sharp drop triggered a decline in global equities and a rise in bond yields, as risk-aversion swept financial markets.
The historic slide comes despite repeated warnings from Bank of Japan officials, including Governor Ueda’s speech on June 24, that they stand ready to intervene in currency markets. However, the BOJ’s ultra-loose monetary stance versus tightening elsewhere keeps the yen under pressure, analysts say. Recent US economic data—including strong personal spending and GDP growth—have further boosted the dollar.
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Sign InTraders are closely watching for any fresh signals from the BOJ, especially after Governor Ueda’s speech and Tamura’s remarks on June 25. Any actual intervention or shift in policy could trigger sharp moves in USD/JPY. Upcoming US inflation data will also be a key driver of rate expectations and dollar strength.