Japanese Yen Pressured By Dovish BoJ Comments; JPYINR Down Half A Percent

Published on Aug 28, 2023 16:34

The Japanese yen came under pressure against the dollar amid dovish comments from BoJ Governor Ueda at the Jackson Hole. BoJ chief stated that underlying inflation is still below their target of 2% and hence the central bank is sticking with their current monetary easing framework. On the other hand, Federal Reserve Powell maintained its hawkish stance stating that that Fed is prepared to raise rates further if appropriate, and intend to hold policy at a restrictive level until inflation moves sustainably lower towards the objective as it remains too high. He further stated that Fed will proceed carefully as we decide whether to tighten further or, instead, to hold the policy rate constant and await further data. The dollar index that measures the greenback against a basket of currencies was trading around 104 mark. Meanwhile, USDJPY holds above 146 mark levels on Monday and currently quoting at 146.57. On the NSE, JPYINR August futures are down half a percent at 56.41.