The yen's devaluation continues. Overview for 25.09.2023

The Japanese yen in the USDJPY pair remains at a ten-month low. The current USDJPY exchange rate stands at 148.40.

The Friday meeting of the Bank of Japan concluded without surprises, with the interest rate remaining at -0.10% annually. The regulator's comments provided clear indications of its readiness to alter the monetary policy structure.

Meanwhile, the US Federal Reserve System left the possibility of a rate hike open last week. This could further widen the spread between the BoJ and Fed rates, which could work against the yen.

The Bank of Japan has communicated that it requires more time to collect and analyse data.

Market sentiment suggests that the central bank may intervene when the dollar approaches 150.00 yen. However, there are no compelling reasons for such expectations. The Bank of Japan is unlikely to wait for the right moment to support the already weak yen.