This is not new nor surprising from today's Nikkei:
The yen likely will continue softening against the dollar and euro as the U.S. and European nations move toward tighter monetary policy while Japan holds to its easing line.
The article references the Bank of Japan intervention last Friday to drive the 10 year JGB yield lower:
- the Bank of Japan stepped in Friday with a powerful mix of bond-buying operations to bring rates down. This included a so-called fixed-rate operation, in which the central bank offered to buy unlimited 10-year JGBs at a yield of 0.11%.
- The BOJ's message evidently came through, as yields subsided to 0.09% on Monday.
How it impacts on yen:
- "The widening interest-rate gap" between Japan and its peers "is feeding the yen's depreciation against major currencies," said Daisaku Ueno of Mitsubishi UFJ Morgan Stanley Securities.
If you were around yesterday you'd have seen the post on Monday's comments from Bank of Japan Governor Kuroda:
I concluded that post with: "No change in tone from Kuroda here." (And as a ps. you might also have seen my post a little later on Japan Government Bond yields: 5yr rises to its highest since January of 2016
In which I said:
- Helping to support USD/JPY - on Friday the Bank of Japan stepped in to drive down the yield on the 10 year bond The USD/JPY market is guessing there may be more of the same to come.
And concluded with:
- I think they may be getting a wee bit ahead of themselves
Which, indeed they had.
The Nikkei piece is here, may be gated:
Yen seen sliding on widening monetary gap between Japan, others
BOJ keeps easing policy strong as peers hike rates
