Japanese yen plunges to 32-year low as government steps in to prop currency
https://m.youtube.com/watch?v=mCZoRUPGGsQ
behappyalways wrote:Japanese yen plunges to 32-year low as government steps in to prop currency
https://m.youtube.com/watch?v=mCZoRUPGGsQ
The BOJ will now allow Japan's 10-year bond yields to rise to around 0.5 percent, up from the previous limit of 0.25 percent.
"This opens a door for a possible rate hike in 2023 under a new governorship."
The yen strengthened to as much as 132.28 against the US dollar, compared with 137.16 immediately before the announcement. The 10-year yield jumped to as high as 0.46 percent from 0.25 percent after the decision.
"A recent drop in global bond yields has created favorable conditions for the BOJ to scrap its yield curve control program in April," said Momma.
"Long-term yields won't rise abruptly even if the YCC is scrapped [as long as the market environment continues to have little momentum for higher yields]," he added.
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