Expectations for more stimulus from the Bank of Japan are leading to more yen weakness today. With energy prices continuing to show weakness, BOJ policymakers are expected to keep attempting to stimulate the economy, and that means a lower yen.
The Bank of Japan is once again weighing its options in the attempt to boost the Japanese economy. BOJ Governor Haruhiko Kuroda says that more stimulus could be coming, if oil prices continue to struggle. This news is concerning since oil prices aren’t likely to recover anytime soon. Oil remains below $45 a barrel today.
Worries that stimulus efforts aren’t working as well as expected are starting to throw doubt on the BOJ’s quantitative easing program. The current account balance figure is disappointing, showing a drop as a weak yen makes imports expensive. Yen is lower against its major counterparts, although it is gaining against Down Under currencies.
Japanese economic growth isn’t large enough to justify much more stimulus from the BOJ, and concerns about other problems will soon trump the sluggish economy.
At 13:33 GMT USD/JPY is higher, moving up to 124.6580 from the open at 124.2360. EUR/JPY is also gaining, heading to 136.5840 from the open at 136.1650. GBP/JPY is up to 193.4180 from the open at 192.3250. AUD/JPY is lower, falling to 91.7860 from the open at 92.0650.
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