In that context, this Friday the yen experiences a marked depreciation after the Bank of Japan (BoJ) decided to maintain the interest rates in negative territory.
In contrast, the d indexthe dollar is heading for its 10th consecutive week of gains following the Fed’s determination. Meanwhile, the euro is in decline due to discouraging economic data from France.
The BoJ kept its rates at -0.1% on Friday and reaffirmed its commitment to supporting the economy until it is confident that inflation will remain at the 2% target.
Central banks: interest rates
The governor of the BoJ, Kazuo Uedasaid at a press conference: “We have not yet projected that inflation will stably and sustainably reach our price target. That is why we must patiently maintain an extremely flexible monetary policy. That said, of course, we will change our policy if we foresee the achievement of our objective.”
The yen fell to 148.42 per dollar, approaching the 150 mark, a point at which analysts have indicated that government intervention to stabilize the currency is likely. The greenback subsequently rose 0.43% to 148.23 yen.
The dollar index, which compares the US currency with a basket of six prominent pairs, advances 0.13% to reach 105.63 units, on its way to closing the week with an increase of around 0.3%, thus marking its tenth consecutive weekly rise.
On the other hand, the euro fell 0.25% to reach $1.0636, after it was announced that economic activity in France decreased considerably more than anticipated in September.
Data from a separate survey of the euro zone as a whole indicated the economy was likely to have contracted in the third quarter.
Likewise, the pound sterling lost 0.4%, trading at $1.2246 and approaching lows in almost six months. This followed the release of data that revealed a marked slowdown in the British economy in September, possibly putting it on the brink of a recession.
Source: Ambito
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