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BUZZ-COMMENT-BOJ stance to keep USD/JPY bid, may be slow going

June 29 (Reuters) - With the Bank of Japan's accommodative stance set to persist, USD/JPY will remain better bid, perhaps testing its 136.71 multi-decade high soon. Yet gains may slow with U.S. yields having peaked for now, and as jaw-boning by Japanese officials and exporter sales hamper rises. The BOJ has reaffirmed its easy policy bias , . Despite voicing more concern recently over the yen's rapid drop , both the BOJ and government do not have a problem with a weak or weaker JPY per se, just the speed of depreciation. Actual FX intervention is off the table for now but verbal warnings will likely continue , . U.S. yields peaked in mid-June, with 10-year Treasuries hitting 3.498% and two-years 3.456% on June 14 before falling back on growth concerns and Wall Street's losses. Two-year yields actually fell back below 3% briefly June 23-24. Terminal Federal Reserve rate expectations have also retreated. Japanese exporters are continuing to sell into rallies. Orders from abroad look to be robust, notwithstanding recent trade deficits, which are due more to surging costs of energy, food and raw materials . Exporter sales are likely to continue on further USD/JPY rises. On the options front, there is talk of possible barriers at 137.00, 140.00, 145.00 and 150.00. Interest in summer carry trades will help limit any JPY rallies . Related . For more click on FXBUZ USD/JPY: https://tmsnrt.rs/3u6O4BC Yield on US Treasury 10s: https://tmsnrt.rs/3QVYoG3 (Haruya Ida is a Reuters market analyst. The views expressed are his own. Editing by Sonali Desai) ((haruya.ida@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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