The Japanese currency has been rising strongly as financial market seek for refugee into safe havens, and according to Andrew Wilkinson from Interactive Brokers LLC “an undershoot for first quarter GDP played into the hands of yen bulls. A less vigorous pace of growth proves to be a negative factor for the outlook for global growth. The yen was already on the gain anyway with regional Asian stock markets continuing to look seasick”.
Will Japan policy makers allow further appreciation in their currency, with the country already facing deflationary issues for almost a year? That’s a question investors are not considering at the moment, thus current levels could favor a capital injection coming ahead, along with the BOC Minutes.
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