Japanese Yen Slides Lower On Rumors Of Amamiya As Next Boj Governor

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Japanese Yen Slides Lower On Rumors Of Amamiya As Next Boj Governor

Japanese Yen Slides Lower On Rumors Of Amamiya As Next BOJ Governor

After reports of Amamiya as the next potential BOJ governor, the Japanese Yen (JPY) fell to a multiweek's low against other currencies, including the USD, EUR, and others. If we look at Amamiya, he is a big fan of very relaxed monetary policy.

This means that if Amamiya takes over, the already relaxed monetary policy of BOJ will become even more relaxed! As per the reports, there's a high chance that Amamiya will replace Haruhiko Kuroda this year. In fact, there's even a chance that we will get a proper announcement of this change later this month.

For now, the term of Haruhiko Kuroda is expected to end in April, and it seems that there's very little chance of any bullish policy from BOJ if Amamiya takes over.

BOJ Accommodative Monetary Policy To Continue

After the reports, the Japanese Yen (JPY) fell to a multi-week low against the USD and other currencies. The USD/JPY pair was up by 0.5%, which means the JPY lost 0.5% against the USD.

As a result of this selling pressure, the USD/JPY was last seen trading around 132. And this selling pressure was further accelerated due to strong payroll data from the US, which strengthened the USD.

Earlier, the markets were hoping that the BOJ would move away from its current monetary policy due to higher inflation in the country.

After all, consumer inflation in Japan is already at 40 years high and is currently hovering at 4%. On the contrary, the BOJ's inflation target is set at 2%, which tells us that inflation is still running wild.

In addition, the manufacturing sector of Japan is also undergoing a slowdown which will also dent the economic growth in the country.

Despite all of these problems, the BOJ continues to hold its stance on losing monetary policy. As per the BOJ, this policy is placed to protect the economy from difficult global conditions and the COVID-19 pandemic.

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