Bank of Japan

The Japanese yen slumped on Wednesday, lifting GBP/JPY from 2024 lows, after an influential policymaker said its July rally and recent global market volatility could prevent the Bank of Japan from raising interest rates again.

The Japanese Yen was sold across the board after the Bank of Japan confirmed it would continue with an age-old policy of ultra-low interest rates and continue to buy government bonds.

The Japanese Yen fell by over half a per cent after the Bank of Japan maintained settings at its December policy update and gave no indication it was close to exiting its Negative Interest Rate Policy (NIRP).

The Japanese Yen rallied by a per cent against the major currencies after Bank of Japan Governor Kazuo Ueda said policy management would "become even more challenging from the year-end and heading into next year".

The Yen fell by more than half a per cent against key rivals after the Bank of Japan's tweaks to its policy settings disappointed a market looking for a more robust response to the country's above-target inflation levels.

The Pound to Yen exchange rate was the biggest faller among Sterling pairs early in the final session of the week after the Bank of Japan (BoJ) said it would enhance the sustainability of its Yield Curve Control program by being more flexible about the level government bond yields are allowed to rise to.

The Pound to Yen exchange rate is the biggest riser of the Sterling pairs for the year but could be turned on its head by month-end if the Bank of Japan (BoJ) surprises financial markets in calling time on its monetary stimulus next Friday, which would also risk creating volatility in GBP/USD too.

The Japanese Yen stabilised against the Pound, Dollar, Euro and others in opening the new month but remained near landmark lows and would likely have most to gain from the single currency and Sterling if a recently popular 'carry trade' leads to another lurch lower currency and intervention to support it  from Tokyo  

The Japanese Yen has reached milestone lows against some counterparts and prompted increased speculation about the risk of another intervention to stem the declines but any support for the currency might eventually be washed away if it later turns out that inflation has escaped from its lantern in Japan.

The Japanese Yen is close to the biggest fallers on the market for a second year running and while forecasters say an eventual shift in Bank of Japan (BpJ) interest rate policy should ultimately lead to a recovery, the Bank of England's (BoE) ongoing experience with inflation suggests that the opposite could easily become true. 

The Pound to Yen exchange rate climbed to its highest level since before the Brexit referendum in the opening week of June but new data revealing a strengthening Japanese economic recovery could pose a significant risk to Sterling if it leads the Bank of Japan (BoJ) to favour a hawkish shift in its monetary policy next week.

The Pound to Japanese Yen exchange rate reached new highs for the year in the final session of the week to place it within arm's reach of 2022 highs after the Bank of Japan (BoJ) indicated that it could be some time before conditions are right for it to consider a change in monetary policy.

The Japanese Yen was close to the bottom of the major currency bucket in the final session of the week but risks further losses and underperformance in the weeks ahead due to rising inflation and the resolutely loose monetary policy stance being maintained by the Bank of Japan (BoJ).

The Yen has surged with significantly increased trading in Japanese exchange rates amid speculation about a possible change in the longstanding Bank of Japan (BoJ) monetary policy stance but analyst views on the outlook for the currency are far uniform and some are still willing to bet against it.

The Yen surged across the board after the Bank of Japan (BoJ) unexpectedly increased the upper limit for the 10-year government bond yield in a surprise decision that is potentially a game changer for the Japanese currency and one that could push GBP/JPY below 158 promptly.

The Japanese Yen was the market's heaviest faller during the big U.S. Dollar rally of this year but it has performed better in recent weeks and would be likely to benefit from a material rally if nascent speculation about a possible shift in Bank of Japan (BoJ) monetary policy next year proves to be well founded. 

The Yen led other currencies higher in the final session of the week with a continued rally against a retreating Dollar in which the Japanese currency pushed Sterling near to its November low amid declines in U.S. bond yields and emerging speculation about a possible change in Bank of Japan (BoJ) policy. 

The Japanese Yen was an underperformer among major currencies ahead of the weekend and the in the process helped to keep GBP/JPY buoyant near six year highs reached earlier in October, although some forecasters suggest that Sterling will unable to sustain itself near current levels for long. 

The Pound to Dollar exchange rate surged into the London close on Friday amid a spectacular rally from the Japanese Yen that appeared to drive a market-wide slump in Dollar exchange rates and was followed by reports of direct intervention from the government in Tokyo and Bank of Japan (BoJ).

The Japanese Yen rallied sharply against all currencies on Thursday following reports suggesting the government in Tokyo had intervened in the foreign exchange market in order to stem declines in a currency that has been under siege from speculative sellers through much of the year.