In the Asian session on Friday (June 2), the US dollar rose against the yen, temporarily reporting 138.84, an increase of 0.04%. Economists believe that the window of opportunity for the Bank of Japan to change policy may be very small or even non-existent, given that the U.S. is likely to slip into recession by the end of the year and the euro zone may stagnate in the second half of the year.
The latest news from the Bank of Japan:
We expect the dollar to remain strong this year. We expect USD/JPY to fall back to 135.00 over the next six months based on the assumption that the Bank of Japan has taken a step towards a JPY adjustment. Bank of Japan Governor Kazuo Ueda said it will take some time to reach the 2 percent inflation target. It is impossible to predict when the 2% inflation target will be reached. Setting a time frame for reaching the inflation target at a time when uncertainty is so high could have unexpected effects on markets. The BOJ cannot reach its target “quickly”. The length of time that monetary policy takes effect can vary widely, although not as long as more than 10 years. Patiently maintaining loose policy will help boost Japan’s potential growth in the long run.
