Jan 23, 2024: The Japanese yen exhibited volatility on Tuesday, initially weakening after the Bank of Japan (BOJ) maintained its ultra-easy policy settings, and later strengthening amid signals indicating a potential end to its negative interest rate policy.
Despite the initial fluctuations, the yen eventually traded flat at 148.0 per dollar, having fluctuated between 148.6 and 146.9.
The yen’s sensitivity to interest rate differentials between Japan and other markets played a role in its movements, with a nearly 5% decline against the dollar so far in the year as market expectations shifted regarding imminent U.S. rate cuts.
