Can the Bank of Japan stop the fall of the Yen?

The Japanese yen continues to exhibit weakness against various currencies, including the USD, EUR, and CA as the strengthening dollar has propelled the USDJPY rate to approach historical highs, notably nearing the 151.7 mark. Prominent figures within the Japanese government and the Central Bank have consistently expressed concerns about the yen's current volatility.

Today, Japanese Finance Minister Shunichi Suzuki reiterated warnings about speculative trading involving the yen, as USDJPY edges closer to the 150 level and while the minister refrained from confirming any specific measures related to interest rate control or intervention, he has emphasized the readiness to consider all available options to address excessive currency market volatility. Nevertheless, a notable uncertainty lingers regarding the possibility of an agreement with the US government concerning the intervention by the Bank of Japan (BoJ) with such an agreement likely to be a prerequisite for any substantial actions and with the potential to have a significant impact on global trade. 

Oil price concerns rattle the markets 

Crude oil has played a significant role in the global inflation challenge as initial concerns about oil supply disruptions caused by the Russia-Ukraine conflict sent prices soaring, later pulling back. However, high global demand and OPEC+ production cuts are pushing prices back towards $100 per barrel, indicating that the fight against inflation is ongoing as the commodity has a noticeable impact on overall price pressure. OPEC+ took action by reducing production, and Saudi Arabia and Russia implemented additional cuts, leading to a substantial supply deficit which is now the largest since 2007-2008, when prices reached nearly $150 per barrel. Despite artificial supply constraints, record demand above 100 million barrels per day suggests that prices are unlikely to significantly decline and it seems like US president Joe Biden does not have any major solutions available as strategic reserves are unlikely to be deployed despite inventories continuing to be depleted.