JPY retreats once again. Overview for 12.10.2023

The Japanese yen is once again depreciating against the US dollar. The current USDJPY exchange rate stands at 149.14.

The market has not received any confirmation of interventions by the Bank of Japan. USDJPY quotes are gradually returning to the levels before the emotional turmoil.

Meanwhile, the international backdrop is becoming more stable. The yield on US government bonds has declined, providing some support to the yen. However, despite this decline, the difference between ten-year interest rates in Japan and the US is at a minimum of 390 points.

Naturally, the market attempts to fixate on this spread. Statistics from the Ministry of Finance show that residents have purchased foreign bonds for a substantial amount of approximately 3.34 trillion yen. The majority of these funds are invested in US Treasury bonds.