News & Feeds June 19, 2022

Yen’s Drubbing Shows FX Market Will Test Resolve of the BOJ

The yen’s tumble after the Bank of Japan’s refusal to budge on ultra-easy monetary policy shows that traders will continue to challenge Governor Haruhiko Kuroda’s commitment to keep the liquidity taps wide open. Hedge funds had been betting that the BOJ would abandon its super-easy rate policy. But Kuroda stuck to his guns on Friday, offering only a rare reference to currency rates in the policy statement to acknowledge that the central bank is scrutinizing risks stemming from the weakening yen. Markets took this as a sign that the BOJ is willing to put up with the deepening sell-off for now, which will likely