ex-BoJ official: USD/JPY could hit 100.00 in early 2019 - Bloomberg
|As reported by Bloomberg, an ex-Bank of Japan (BoJ) official said that the Yen could reach 100.00 against the US Dollar in fairly short order, and Japan has few policy tools remaining that would allow them to counter the effects effectively.
Key quotes
While that level would be tolerable, there is little the depleted BOJ can do about further yen strength or a serious downturn in the economy, Kazuo Momma, former executive director of the central bank, said in an interview with Bloomberg Tuesday. “However bad Japan’s economy gets, the BOJ can’t add stimulus anymore,” Momma said.
With little else the central bank can do, BOJ Governor Haruhiko Kuroda and his fellow policy makers will remain observers for much of this year, Momma said. If the economy needs help, it’s time for the government to step up with additional fiscal spending, he said.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.