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Hunan Weide Investment Promotion (Fortune
Inquiry Hotline
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Contact Person
Manager Ye
Mainly engaged in bulk spot investment
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Company agent
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Yesterday, because the Bank of Japan did not clearly hint at further easing, the US dollar fell against the yen. Analysts said that the future trend of the yen depends on who pays for its fiscal policy. If it is the private sector, the yen will be flat or stronger, but the yen is expected to weaken after the Bank of Japan intervenes.
On Monday this week (July 2), the U.S. dollar fell against the yen as the Bank of Japan did not clearly signal further easing policy. Market participants said that the future trend of the yen will depend on who will pay for Japan's fiscal policy.
Yesterday, Bank of Japan Governor Haruhiko Kuroda hinted that it is ready to further expand its already huge stimulus plan, but he did not give a clear hint of the aggressive easing policy that some market participants were expecting. Hapani, a foreign exchange strategist at Bank of Tokyo-Mitsubishi UFJ, said
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Therefore, China and the United States commit to adopt measures including All policy tools, including monetary, fiscal and structural policies, boost confidence and growth
Part of Kuroda's speech mentioned the adverse effects of interest rates falling below zero, which helped allay speculation about further cuts to the benchmark policy rate and in turn boosted the yen.
However, the slight decline in the U.S. dollar index caused by poor U.S. non-agricultural data and reduced expectations for a rate hike by the Federal Reserve also contributed to the relative appreciation of the yen. Looking back, Japan's current core inflation rate has always been below the % target, and savings and credit growth data do not show an optimistic trend for the economy. Various measures over the past few years may have prevented the situation from worsening, but they have not yet led to a decisive breakthrough. Following his resounding victory in the Senate election last month, Shinzo Abe launched a new round of fiscal expansion this summer. The impact of this expansionary fiscal policy on the exchange rate depends entirely on monetary policy.
Hunan Weide Investment Promotion (Fortune
Consultation phone number
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Contact person
Manager Ye
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