The Japanese Yen (JPY) is entering Thursday’s NA session with an impressive gain of 0.8%, surpassing the majority of the G10 currencies thanks to a slight risk aversion, says Shaun Osborne, head of Strategy Strategy of Scotiabank.
USA
“The Wednesday comments of the US Treasury Secretary, Besent, suggested that the US would not seek a specific exchange rate objective in their negotiations with Japan. The comments imply a desire to strength of the JPY (weakness of the USD) while the US administration seeks to undo the ‘overvaluation’ considered of the dollar resulting from its status as a reserve currency.”
“We are still bullish in JPY from a long-term perspective, pointing to a drop in USD/JPY (JPY strength) to the 125-130 area. A reminder that the next policy decision of the BOJ is scheduled for May 1 and that it remains one of the few central banks of the G10 that maintains a hard line posture and a tendency towards more rates of types.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
