Japanese Yen | Japanese Yen Currency News » BOJ

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.

Bank of Japan Lowers Interest Rates to 0.10%

admin — Fri, 19 Dec 2008 10:16:31 +0000

The JPY began losing its momentum yesterday after a long week of steady gains. The Japanese currency experienced its first daily drop against the U.S. Dollar as the Japanese Finance Minister stated that currency intervention in the shape of an Interest Rate cut by the Bank of Japan (BoJ) may be used to keep the Yen from excessive appreciation.

The rate cut did in fact happen during this morning’s early trading hours. The Japanese Interest Rate now sits at 0.10%, the lowest in the world. Some officials believed that the intervention was necessary considering the recent currency gains and the ongoing global recession which has driven global Interest Rates to new lows. Lowered international rates have consequently pushed the value of the Yen to levels which have damaged Japan’s ability to export. Traders may expect a somewhat steady depreciation in the Yen during the coming trading hours in response to this rate cut.

BOJ Remarks Do Little to Move the JPY

admin — Thu, 11 Dec 2008 10:25:36 +0000

Yesterday’s trading saw the Yen drop slightly against the Dollar, ending the day at 92.44. The drop can be attributed to greater risk taking as investors dumped their Yen positions for higher yielding currencies.

A statement was made yesterday by Bank of Japan (BoJ) Governor Shirakawa, as he signaled for possible direct intervention by the government in currency markets to influence the value of the JPY. A recent appreciation of the Yen has hurt the export dependant Japanese economy.

However, these statements have been made before, and the currency markets have yet to see the Japanese government take steps to sell Yen on the open market. These words may never come to fruition. Look for the USD/JPY to continue to trade in the 92-93 range for the remainder of the week.

BOJ Increases Lending to Ease Year-End Credit Crunch

admin — Wed, 03 Dec 2008 16:00:43 +0000

The JPY has strengthened against most of its major counterparts. Japan’s announcement that it would hold its interest rates steady came as no surprise as it has held one of the lowest interest rates worldwide for some time now. In the Bank of Japan’s (BoJ) press conference yesterday it was announced that they would expand lending by about $32 billion to help companies ride out a year-end credit squeeze and accept lower rated corporate bonds as collateral for loans. These indicators, coupled with the recent financial crisis, actually point to a continuation of the JPY’s bullish trading as it has historically done well during times of economic downturns.

Traders today have very little fundamental news emerging from Japan as the only indicator being released is the Capital Spending report. Analysts forecast the figure to decrease from its previous reading. This indicator typically generates small amounts of volatility. However, the USD appears to be clutching the reins of today’s market. Traders would be wise to note its future direction as it usually carries a heavy impact on the other currencies.