USD/JPY: Dollar Falls Under ¥150 After Rate Comments from Bank of Japan Boost Yen

Bank of Japan policymaker Hajime Takata said the central bank is in no rush to raise rates quickly but it does plan to end easy-money policies sometime soon.

• The USDJPY pair skittered down early on Thursday after a Bank of Japan representative fueled hopes that the easy-money policies may pivot soon. The exchange rate dropped about 110 pips, or 0.7%, moving from ¥150.70 to levels near ¥149.60. Previously, the dollar was floating sideways against the weaker yen.
• Bank of Japan board member Hajime Takata said that the Japanese central bank should consider tweaking its negative interest rates and moving away from the easy-money policy that has been kept unchanged for years. Further, he signaled that an exit from this regime might be on the cards too.
• Analysts expect the first signs of policy shift to materialize as soon as April. Such elevated expectations could propel the yen’s valuation, which has been kept under pressure while the US dollar has dominated dealmaking. This year, the greenback has added more than 6% to its valuation against the languishing yen.