Bloomberg on Nostr: Yen plunge: The relentless impact of US Federal Reserve on global markets ========== ...
Yen plunge: The relentless impact of US Federal Reserve on global markets
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The yen's plunge is driven by the US Federal Reserve's higher-for-longer policy. Japanese authorities have been unable to halt the slide. Efforts to prop up the yen have fallen flat and further intervention is likely to be ineffective. The disparity between near-zero borrowing costs in Japan and high US rates is the central driver of the yen's weakness. The US's dominance in global financial markets is evident as the dollar remains strong. The next big catalyst for the yen is the US inflation gauge, which could influence the Fed's decision to lower borrowing costs. Japan has $200 billion to $300 billion of ammunition for intervention. The Bank of Japan is intervening on the wrong side and has limited reserves. The yen's slide showcases the Fed's grip on global markets.
#Yen #UsFederalReserve #GlobalMarkets #JapaneseAuthorities #Intervention #BorrowingCosts #Dollar #Inflation #BankOfJapan
https://www.bloomberg.com/news/articles/2024-06-26/yen-s-relentless-slide-showcases-fed-s-grip-on-global-markets
==========
The yen's plunge is driven by the US Federal Reserve's higher-for-longer policy. Japanese authorities have been unable to halt the slide. Efforts to prop up the yen have fallen flat and further intervention is likely to be ineffective. The disparity between near-zero borrowing costs in Japan and high US rates is the central driver of the yen's weakness. The US's dominance in global financial markets is evident as the dollar remains strong. The next big catalyst for the yen is the US inflation gauge, which could influence the Fed's decision to lower borrowing costs. Japan has $200 billion to $300 billion of ammunition for intervention. The Bank of Japan is intervening on the wrong side and has limited reserves. The yen's slide showcases the Fed's grip on global markets.
#Yen #UsFederalReserve #GlobalMarkets #JapaneseAuthorities #Intervention #BorrowingCosts #Dollar #Inflation #BankOfJapan
https://www.bloomberg.com/news/articles/2024-06-26/yen-s-relentless-slide-showcases-fed-s-grip-on-global-markets