Japanese Yen | Japanese Yen Currency News » Bank Of Japan Weakens JPY

Japanese Stocks and Risk Appetite Gain on Recently Weakened JPY

admin — Mon, 05 Jan 2009 14:19:55 +0000

Throughout today’s early trading hours the JPY appeared to be either floating or strengthening against its currency rivals. The forecast that the Bank of Japan (BoJ) will soon take stronger measures to curb the economic recession, coupled with the recent weakening of the JPY, has helped boost risk appetite. This increase in risk appetite has helped Japanese stocks rebound as a weakened JPY and low Crude Oil prices lifted the prospects of an increase to Japanese automotive sales.

This week will be an unusually quiet week for the JPY as there will be scarce economic news emanating from the island economy. However, there may be some unscheduled announcements this week from the BoJ about its decisions for, and implementation of, further economic stimulus packages. Forex traders should watch for any such announcements as they carry the potential to indicate future price movements and investor confidence levels.

BoJ Weakens JPY to Boost Exports

admin — Mon, 22 Dec 2008 11:35:27 +0000

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.