Japan FSA Official: We are keeping an eye on the USD funding of the country's banks
“As interest rates rise, Japanese banks will be at a disadvantage to US rivals,” said an official from Japan’s Financial Services Agency (FSA) during early Wednesday morning in Asia.
The official also signalled a close observation on the US dollar funding of the country’s banks, suggesting a move in the docket from the Bank of Japan (BOJ).
FX implications
There have been multiple Japanese officials suggesting an intervention to restrict the yen’s slump of late. However, no threats have been conveyed to the BOJ’s easy money policy, which in turn keeps the USD/JPY bulls hopeful around the 24-year high marked in the last week near 145.00.
Also read: USD/JPY Price Analysis: Marches firmly towards 144.40 after elevated US CPI
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
