Jul 17 (forexcrunch.com) - There was a time when some investors believed the worst was over for the yen. These beliefs were destroyed in the past week as the yen fell further against the dollar.
The week started with BOJ Governor Haruhiko Kuroda’s warnings about Japan’s worsening economic outlook.
Markets also got a chance to confirm the ultra-loose monetary policy adopted by the BOJ when Japan’s ruling coalition party won more seats, vowing to maintain the current policy. A change in Japan’s monetary policy might not be in the cards.
As the yen suffered sharp declines during the week, Japan’s government got concerned and said it would closely monitor US monetary policy and inflation trends. This concern was still not enough, as the possibility of a 100bps rate hike from the Fed put the last nail in the coffin. The yen’s future remains bleak. ...continue reading