BoJ Weakens JPY to Boost Exports
Posted on 22. Dec, 2008 by admin in JPY Economic News, Japanese Yen, Japanese Yen Currency
The Bank of Japan’s (BoJ) monetary intervention last week has helped slow down the appreciation of the JPY in this week’s early trading hours. With Japan’s trade gap growing and economy entering a deeper recession, the BoJ needed to take steps to weaken the national currency in order to boost Japanese exports.
So far the intervention has worked as the JPY has begun to depreciate against all of its currency counterparts. Whether or not this helps the Japanese economy in time to turn back the recession and return the island country back to growth is another matter.
This week will be slightly more important for the JPY than most other currencies. While its biggest news was the near-0% interest rate decision taken last week, this week will witness the Japanese economy releasing more economic data than usual as the rest of the world goes on holiday. Forex traders should pay close attention to the JPY this week as it may begin its steady descent against the other major currencies.
