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Japanese Yen Hovers Around 11 Month Low As BOJ Seen Cautious In Revising Easy Money Policy

Published on Sep 06, 2023 15:39

The Japanese Yet lingered around 11 month low as market poised itself for continued lax monetary policy action from the country`s central bank. Nakamura Toyoaki, Member of the Monetary Policy Board of Bank Of Japan or BOJ has noted that despite being under downward pressure stemming from the slowdown in the pace of recovery in overseas economies, Japan`s economy is likely to recover moderately for the time being. He noted further that current inflation in Japan is still largely characterized by import-driven cost-push factors. Given this, making a shift to monetary tightening before the increases in selling prices translate to those in wages runs the risk of suppressing demand and weakening firms` earning power again. Therefore, the Bank needs to thoroughly grasp the situation and make cautious judgment before revising its monetary policy. This kept the USDJPY in a range and the pair currently quotes at 147.36, down 0.20% on the day. On the NSE, the JPYINR futures are trading flat at 56.70 after a feeble attempt to rise near 57.80 mark in early moves.

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