The Japanese Yen is fundamentally weak as low inflation in Japan is causing the Bank of Japan to keep interest rates low, at a time when other central banks in the U.S, Canada, Australia, New Zealand and the UK are raising rates to deal with high inflation in their domestic economies.
The interest rate differentials and divergence in monetary policy are forcing Japanese Investors to sell the Yen in exchange for currencies that pay a premium interest rate on Government and corporate bonds.
The interest rate differentials and divergence in monetary policy are forcing Japanese Investors to sell the Yen in exchange for currencies that pay a premium interest rate on Government and corporate bonds.
Kayan Kalipha
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Kayan Kalipha
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.