Title: Japan's yen bounces briefly after Kuroda comments
Apr 17, 2022 10:55PM ET
After hitting fresh two-decade lows on Monday, the yen briefly recovered after remarks by Japanese policymakers on Monday kept the U.S. dollar in narrow ranges against most other currencies.
The yen fell to a two-decade low of 126.795 in early Asian trading before both Bank of Japan Governor Haruhiko Kuroda and Finance Minister Shunichi Suzuki voiced concerns, sending the yen as high as 126.25. The recovery turned out to be a short-lived one, however, and the exchange rate was soon found to be back at 126.57.
With Easter holidays in Australia, Hong Kong, and other parts of Asia affecting trading in other currencies, the dollar remained strong and was supported by an aggressive stance by the U.S. Federal Reserve, while the euro was crippled by uncertainty over the timing of a rate hike in the eurozone.
At Monday's lows, the yen was nearly 10% weaker than it was in early March. Last week, it was down by 12%, and the euro was down by 12% weaker than it was in early March. At Monday's lows, the yen was nearly 10% weaker than it was in early March. Last week, it fell nearly 2% against the dollar, marking its sixth straight week of losses.
Win Thin, head of currency strategy at BBH Global Currency Strategy, said the dollar does not appear to have any significant chart points to halt a possible further rise against the yen to a 2002 high of 135.15.
Japanese policymakers have been vociferous in expressing concerns about the declining yen, especially after it slid to the weaker side of 125 per dollar on April 11.
While the Bank of Japan is expected to acknowledge rising inflationary pressures and take no further action at its upcoming monetary policy review on April 27-28, analysts say the weak yen is increasing pressure on Kuroda to change his policy of zero interest rates and yield curve management soon.