JPY – The Japanese yen soared across the board on Thursday after monetary authorities intervened in the foreign exchange market to boost the battered currency for the first time since 1998.
Nevertheless, despite JPY’s immediate uptick, analysts doubt Japan will be able to sustain a pronounced recovery in the safe-haven.
Indeed, commenting on monetary policy divergence between the BoJ and other major central banks, Wells Fargo argues: “Over the next three to six months or possibly even longer, as long as those diverging paths of monetary policy are still in place and those differences persist, you’ll continue to see a weaker yen.”
Nevertheless, despite JPY’s immediate uptick, analysts doubt Japan will be able to sustain a pronounced recovery in the safe-haven.
Indeed, commenting on monetary policy divergence between the BoJ and other major central banks, Wells Fargo argues: “Over the next three to six months or possibly even longer, as long as those diverging paths of monetary policy are still in place and those differences persist, you’ll continue to see a weaker yen.”