The Yen weakened to its lowest level in 7 months. Investors keep an eye on the Bank of Japan meeting on 16 June.
“The yen” weakened to its lowest level since November, or in seven months, as investors turned their attention away from the results of the Federal Reserve meeting. Coming to the policy decision of the Bank of Japan (BOJ) this Friday (June 7, 16).
On June 15, 2566, Bloomberg News reported that the Japanese yen fell as much as 0.7% to 141.04 per dollar. Hirokazu Matsuno, Japan's Chief Cabinet Secretary, stated that excessive movement was undesirable. Last month, when the yen weakened to a similar level, officials from the Bank of Japan, the Ministry of Finance, and the Financial Services Agency held a meeting.
Takeshi Ishida, currency strategist at Resona Bank Ltd., said, “Based on market movements and the Fed's policy outlook, There is a growing possibility of a trilateral meeting and such concerns are likely to increase in the market. However, the dollar-yen upside may be limited. This is because the US Treasury yields have not increased much.”
Meanwhile, the Fed's tough stance on Thursday contrasted with the BOJ's policymakers sticking to monetary easing. The Fed expects interest rates to be higher than ever before. Meanwhile, nearly all economists surveyed by Bloomberg said the Bank of Japan would keep its ultra-loose policy unchanged on Friday.
However, last year The yen rose to 146 yen per dollar. It has sparked Japan's first intervention to support the currency since 2541, although officials have repeatedly warned against direct action. Meanwhile, the yen will fall about 7% in 2566.
