JPY is once again devaluing. Overview for 13.11.2023

The Japanese yen paired with the US dollar is depreciating again. The current USDJPY exchange rate stands at 151.71.

The instrument has experienced growth for six consecutive sessions. However, last week marked the yen's sharpest decline since August, dropping by 1.48% against the US dollar.

These represent the highest levels for the currency pair since early November. There is uncertainty in the market regarding whether Japanese authorities will intervene to support the national currency in any form.

The primary reason for the JPY's weakness stems from the carry trade operations reliant on the difference between the interest rates of the Bank of Japan and the US Federal Reserve. The BoJ's interest rate remains negative at -0.1% per annum. The yen finds itself in a vulnerable position due to the continued ultra-soft monetary policy by the Japanese regulator.

In truth, the prospects for interventions appear very bleak.