Does the Bank of Japan intervene again to reduce the deterioration of the yen?

Markets are awaiting the Bank of Japan’s monetary policy trends, particularly in the light of the weakness of the yen and record levels of decline against the dollar, which boost expectations of the Bank’s re-intervention — similar to last year’s — in order to reduce currency deterioration.

The yen hovered near the main 145 level against the dollar, a level that warranted the intervention of Japanese authorities last September.

Japan’s Finance Minister, Shonichi Suzuki, earlier pledged to take appropriate steps in the face of the excessive weakness of the yen, which was seen as an indication of possible intervention by Japanese authorities to support the currency.

“The US dollar is currently trading at 144 yen, the highest level since November 2022,” MENA Chief Market Strategist at BDSwiss, Mazen Slahab, said in press releases.

Slehab indicates that four main factors currently determine the yen’s trajectory against the dollar in one form or another in the next phase; The first of those factors related to the “growth of wage levels in Japan”; Wage increases, however, fuel higher inflation rates.