USD/JPY Set to Sustain its Ascending Trajectory.
The Japanese Yen in conjunction with the US Dollar is experiencing a rapid depreciation. The existing USD/JPY exchange rate is now positioned at 145.49.
The JPY exchange rate continues to be subject to considerable pressure, attributable to the interest rate disparity and monetary sentiment. This trend persists despite a marginal alteration in the Bank of Japan's monetary policy.
For Q2 2023, Japan's GDP exhibited a remarkable 1.5% q/q growth, surpassing both the anticipated 0.8% expansion and the previous 0.7% increment. On a year-over-year basis, the Japanese economy surged by an impressive 6.0%, doubling the initial expectations.
The weakened Yen appears to have significantly bolstered export-oriented companies, thereby contributing considerably to the country's fiscal resources. Consequently, this has facilitated the maintenance of infrastructure and social outlays.
At present, devaluation remains the predominant and viable course of action for the JPY.