Yen is lower against most of its major counterparts today, dropping as continued easing from the Bank of Japan is expected. Even with some of the recent improvements to the Japanese economy, “Abenomics” is expected to continue, and that means long-term yen weakness.
While other countries, particularly the United States and the United Kingdom, start to look at ways to move away from easing measures, Japan is still committed to its stimulus efforts. The plan to kickstart the Japanese economy, called Abenomics after the Prime Minister Shinzo Abe, is still moving forward.
The Bank of Japan has already injected trillions of yen into the economy, and it plans to move forward with the latest infusion. The coming infusion is designed to help offset a coming tax hike. It’s been an interesting balancing act, and the Bank of Japan is trying to combat decades of deflation without running into the problem of out of control inflation.
For now, the continued stimulus efforts are likely to keep the yen down against its major counterparts, since its rivals have diverging monetary policies.
At 14:05 GMT USD/JPY is up to 104.7900 from the open at 104.5560. EUR/JPY is up to 142.4550 from the open at 142.3385. GBP/JPY is up to 172.1870 from the open at 171.5450.
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