JPY is very weak. Overview for 18.09.2023

The Japanese yen is weakening again against the US dollar. The current USDJPY exchange rate stands at 147.74.

The Bank of Japan will hold a regular meeting this week. Due to recent disappointing statistical data, the regulator is expected to keep all its main controls unchanged. It became known earlier that Japan’s GDP in Q2 2023 turned out to be extremely weak with the economy reaching a deadlock. The report showed that the growth of wages was falling behind inflation, and employment sector conditions were becoming milder. Domestic demand appears to be unable to support price dynamics in the long run.

At the same time, it is worth keeping in mind the fact that the BoJ is now extremely attentive to the yen exchange rate with the US dollar approaching the mark of 150.00 yen. This adds to the risk of political and fiscal surprises.

Recall that it was the threshold of 150.00 yen per dollar that triggered foreign exchange interventions in October 2022.

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Source: RoboForex


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