The yen (Guay) strengthened against the dollar (US dollar) and Bitcoin
After the United States Secretary of the United States, Scott Besent, said the Bank of Japan is behind the inflation curve and will probably have to increase interest rates.
“The Japanese have an inflation problem … They are behind the curve, so they are going to walk, and need to control their inflation problem,” Besent said during an interview with Bloomberg TV.
Besent takes contrasts with that of the governor of Boj Kazuo Ueda, who has justified to move slowly in rates increases because the underlying inflation, which focuses on the force of domestic demand and wages, remains the objective of 2% of the Central Bank despite the fact that the headline rate is greater than 3%. In July, the bank maintained its stable reference interest rate at 0.5% without providing clues about future movements.
The Trump administration has been asking for a more strict monetary policy in Japan for months to stop the depreciation of YEN and reduce the rate differential between the two coins. In a report published in June, the Treasury asked the BOJ to concentrate on growth, inflation and normalization of the weakness of Yen against the dollar as part of a structural rebalancing of bilateral trade, according to the Financial Times.
Besent’s comments strengthened the highest yen in all areas. Bitflyer listed the PAR BTC/JPY fell 1.7% to 17,845,432 yen, publishing losses larger than the BTC/USD PAR of Coinbase, which fell to $ 121,650. The pair of dollars yen (USD/JPY) He slid for the third consecutive day, reaching a minimum of three weeks of 146.21, according to Data Source TrainingView.
Risky ahead?
Merchants have historically used Yen as a transport currency to finance asset purchases in high performance economies. That is, the low interest rate of Japan has exploited to borrow and and buy assets that grant greater performance, which benefits from the difference. As such, the demonstrations in the Yen often cause fears of risk aversion in financial markets.
That may not be the case, according to Marc Chandler, Bannockburn Global Forex market chief strategist.
The risk is frequently the result of the unwill (BRL). However, Yen may not be the most attractive financing currency today.
“Not only the Swiss policy rate is zero, but JPY’s volatility is higher,” Chandler told Coindesk in an email.
