USD/JPY has surged to its highest level since November 2022.

Indicating a renewed wave of devaluation for the Japanese yen. The current quote for USD/JPY stands at 144.45.

The Japanese yen, once again, finds itself in a weakening trend after a brief pause. The US dollar is steadily approaching the 145-yen threshold, a level that previously triggered extensive currency interventions. However, past interventions in September and October of last year failed to yield significant results. The ultra-loose monetary policy of the Bank of Japan, combined with interest rate differentials between the yen and global central banks, continues to work against the Japanese currency.

Japanese officials at various levels have expressed concerns regarding the rapid and substantial decline in the JPY exchange rate. There is a consensus that policymakers are closely monitoring the market and stand prepared to take action if market movements become excessively volatile. However, the specific threshold at which the Ministry of Finance and the Central Bank would intervene remains uncertain.

This time, the depreciation of the yen was triggered by statements from the governor of the Bank of Japan, emphasizing the considerable distance the regulator still needs to cover to achieve a 2% inflation target and sufficient wage growth. These remarks further added to the downward pressure on the Japanese yen.

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