ITC: Yen Depreciation Appears Exceptionally Smooth

Odaily Planet Daily News - Sean Callow, Senior FX Analyst at InTouch Capital Markets, stated that the most striking aspect of the yen's depreciation over the past few weeks has been the relatively smooth and orderly movement in exchange rates. He added that the USD/JPY exchange rate has shown a moderate upward trend, without the sharp volatility that Japanese authorities typically use to justify intervention in the forex market. Callow noted that the decline in oil prices should have provided some support for the yen, but interest rate factors remain the key driver of the market. Robust U.S. economic data has strengthened market expectations for a Federal Reserve rate hike this year. Although the Bank of Japan took action in June, a 1% yield is not attractive for a currency that is already near a 40-year low against the dollar. (Jin10)