The yen rebounds sharply, temporarily reaching the low 154 yen level against the dollar – Nikkei futures are also stalling due to the strong yen – Bloomberg

The yen price rebounded sharply and at one point hit the 154 yen level to the dollar. The yen depreciated during Bank of Japan Governor Kazuo Ueda’s regular press conference, but after the press conference, there were scenes of rapid buybacks. Markets are increasingly wary of intervention by Japan’s monetary authorities.

The yen temporarily rose to 154.99 yen against the dollar, 0.4% higher than the previous day. Before the sharp rebound, the price was 156.82 yen, the lowest price since May 1990. As of 5:42 pm on the 26th, the yen has weakened again to the 156.50 yen level.

Hiroyuki Machida, Director of the Foreign Exchange and Commodity Sales Department at Australia and New Zealand Bank, said, “The timing seems to be that there is an intervention after Governor Ueda’s press conference, but I don’t know. ” he said.

Marito Ueda, head of financial market research at SBI Liquidity Markets, said, “I don’t think it’s an intervention.If it’s an intervention of this magnitude, it’s tough.”

As the yen briefly appreciated, Nikkei average futures on the Osaka Exchange at one point stalled to 37,700 yen during night trading. Until then, it had been hovering around 38,000 yen.

At its monetary policy meeting held on the same day, the Bank of Japan decided to maintain the policy rate for overnight uncollateralized calls at the current 0-0.1%. The decision to lift negative interest rates was just made at the previous meeting, which was in line with market expectations. As interest rates remain low, the interest rate differential with the US remains wide, and dollar buying and yen selling continue.

Governor Ueda said at an afternoon press conference that while the upward revision of the outlook for fiscal 2024 prices in the Outlook for Economic Activity and Prices (Outlook Report) included some influence from the weaker yen, he added, “So far, it has not had a large impact. It doesn’t mean that we are doing so.” He said that the risk of an impact on the underlying price increase rate occurring in the future is not zero, and said, “If there is an impact that cannot be ignored, it will be a consideration or decision material for monetary policy.” Ta.

Bank of Japan Governor says if yen depreciation has a negligible impact on underlying prices, it will be a factor in his decision – policy will be maintained

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