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The Japanese yen saw some weakness during March falling 300 pips against the buck and 600 against the euro. The weakness was partly attributable to a dissipation risk-off sentiment.
However despite this move lower in yen, the currency is still much stronger across the board since the BoJ introduced negative interest rates.
The three-tiered negative rates system means that only reserves above a certain threshold held at the central bank are charged negative interest.
Clearly the market sees this as a piecemeal measure, hence the continued appreciation of the currency since its implementation.
The BoJ continues to watch core inflation closely as its primary indicator of ... (read more)