Japanese Minister Spooked by Rapid Decline of JPY

Japanese cabinet ministers expressed concern about the yen’s rapid fall, suggesting that the government may be trying to ward off any criticism that it is intentionally devaluing its currency to boost exporters’ competitiveness.

The yen hovered near a seven-year low versus the dollar on Friday, having tumbled around 7 yen this week after the Bank of Japan stunned investors by expanding its quantitative easing program on Oct. 31.

Policymakers have stated the BOJ’s easing is not targeted at the yen, but some politicians worry higher import prices will hurt the economy.

Japan’s monetary policy has escaped criticism from other countries so far, but there are concerns that if the yen weakens too quickly, overseas officials will criticize Tokyo for manipulating the yen to reflate its economy with a beggar-thy-neighbor currency policy.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza