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Yen falls as BOJ intervenes to keep bond yields fixed

Hong Kong / Tokyo, March 28 (Reuters)-The Japanese yen fell to a six-year low on Monday after the Bank of Japan entered the market to keep government bond yields below key targets, but Bitcoin was almost I exceeded my goal. The best this year.

The Bank of Japan offered to buy unlimited 10-year government bonds (government bonds) at 0.25% on Monday morning after the yield on 10-year government bonds reached a six-year high of 0.245%.

The dollar rose to 123.1 yen, the strongest since December 2015, rising 0.7% to 122.9 yen on the day, rising nearly 6% in the last 12 sessions.

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“In contrast to recent Fed comments, the BOJ’s actions say that the BOJ is still dovish, as the market sees differences in monetary policy between the US and Japan as a major driver of the dollar-yen. It made an impression, and that was the strong dollar. ” Shinichiro Kadota, senior currency strategist at Barclays in Tokyo, said.

“I think the risk is still up in the short term, especially if the story of this monetary policy difference remains, but the speed is pretty fast and it looks like it’s a little overheated, so there’s the opposite headline. See also some fixes, “he added.

The Treasury yield for the past 10 years was 2.5046%, up 33 basis points last week.

Soaring commodity currencies are damaging the yen as they contribute to the expansion of Japan’s trade deficit and at the same time give the commodity currencies a strong impetus.

The Australian dollar was close to the four-month high last week at $ 0.752, while the Canadian dollar was just below Friday’s two-month peak at $ 1.249.

Australian currency watchers are also paying close attention to Australia’s budget on Tuesday. The Australian Finance Minister said on Sunday that the budget would bring a very significant improvement to government earnings.

One of the possible headwinds in Australia is the situation of COVID-19 in China. After Shanghai announced on Sunday that it would block the city to carry out the COVID-19 test.

The dollar rose 0.24% to 6.3986 in the offshore yuan on Monday morning and has since risen.

The euro lasted at $ 1.0956, down 0.25%, but recently has fallen slightly, but is still under pressure due to the economic impact of the war in Ukraine.

“The risk balance suggests that the EUR / USD could test 1.0800 in the coming weeks,” said a CBA analyst.

Inflation rates for major European economies and the euro area will be announced Wednesday, “the European Central Bank is bound by growth headwinds and very high inflation rates,” the CBA said.

Stirling was 0.19% soft at $ 1.3157

The dollar index was up 0.23% to 99.079.

Data on non-farm payrolls this Friday are also potentially pushing the dollar up, according to analysts.

In the crypto market, Bitcoin has been sitting fairly at around $ 46,900 after jumping to $ 47,766 in early trading. This is the highest level since early January.

Ether, the second largest cryptocurrency in the world, was $ 3,320.

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Report by Alun John in Hong Kong and Kevin Buckland in Tokyo Edited by Shri Navaratnam

Our Criteria: Thomson Reuters Trust Principles.

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