The Japanese yen hit 137 per dollar in late June for the first time since September 1998 before recouping some losses, as Japan diverges drastically on monetary policy from other major economies. The Bank of Japan remains the only major central bank that has maintained ultra-easy policies at a time other major economies are racing ahead with interest rate hikes to combat surging inflation. The BOJ left its key short-term interest rate unchanged at -0.1%, and the one for 10-year bond yields around 0% at its June meeting, as widely expected. The board also said it would offer to buy unlimited amounts of the bonds to defend an implicit 0.25% cap every day, repeating the guidance on market operations it made in April. Moreover, Governor Haruhiko Kuroda stressed the need to maintain its ultra-loose monetary policy as the economy has not been affected much by the global inflationary trend, as country's 15-year experience with deflation is keeping wage growth subdued.
Historically, the Japanese Yen reached an all time high of 358.44 in January of 1971. Japanese Yen - data, forecasts, historical chart - was last updated on June of 2022.
The Japanese Yen is expected to trade at 136.76 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 141.74 in 12 months time.