Japanese yen fell to its weakest level

The Japanese yen fell to its weakest level against the dollar since 1986, increasing speculation about possible intervention.

جاپانی ین ڈالر کے مقابلے میں 1986 کے بعد اپنی سب سے کمزور سطح پر آ گیا، جس سے ممکنہ مداخلت کی قیاس آرائیاں بڑھ گئیں۔

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Japan: policy signals and currency intervention risk

•  Bank of Japan Governor Ueda signaled he expects further rate hikes as inflation rises.
•  Finance Minister Katayama said the ministry is committed to responding appropriately to currency moves, a clear reference to possible intervention as the yen trades near multidecade lows.
•  Market pricing: traders assign only about a 25% chance of a BOJ rate increase before the December meeting, reflecting skepticism about near-term tightening.

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BoJ Ueda Signals Moderate Recovery

BoJ’s Ueda says Japan’s economy is recovering moderately albeit with some weakness; Economic growth likely to slow but continue to moderate recovery

• Risk that underlying inflation may overshoot 2%.
• Financial environment remains accommodative after recent rate hike; continues to support economic activity.
• Timing and pace of future hikes will be decided by scrutinising the likelihood of baseline forecasts materialising, as well as risks.
• Japan’s Financial system remains stable as a whole.

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