Yen Still Gets a Boost from Risk Aversion
Moderator: moderators
-
- rank: 10000+ posts
- Posts: 37437
- Joined: Thu Jan 14, 2016 9:36 am
- Reputation: 2
- Gender:
Yen Still Gets a Boost from Risk Aversion
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)
Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.
Thank you for your support.