S&P Cuts Japan’s Credit Rating

After nearly a year on credit watch, Standard & Poor’s acted today cutting Japan’s credit rating to AA-. News of the rating reduction sent the yen lower by 0.9 percent to 82.89 yen to the dollar from 82.17 at yesterday’s close.

“News of Japan’s rating downgrade spurred yen selling as it occurred,” said Koji Fukaya, chief currency strategist at Credit Suisse Group AG in Tokyo. “With domestic investors holding most of Japanese government bonds, the direct impact on the currency market will likely be small. Still, in the near term, the market will likely take this as a negative.”

Source: Bloomberg

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.