The yen (Jpy) reinforced against dollars (USD) and bitcoin
After US Secretary of Treasury Scott Bessent said the bank of Japan was behind the inflation curve and probably had to raise interest rates.
“The Japanese have a problem with inflation … They are behind the curve, so they are going to be hunting, and they need to control their inflation problem,” Bessent said In an interview with Bloomberg TV.
Bescent’s contrasts are the BoJ Governor Kazuo Ueda, which is justified in the move slowly at the rate of inflation, which focuses on the strength of demand and domestic wages, remains short to the 2% target of the central bank even though the headline rate is more than 3%. In July, the bank held the benchmark interest rate stable at 0.5% while providing no clues to future motions.
The Trump administration has been calling for months for a lighter financial policy in Japan to stop yen depletion and narrow the rate between the two currencies. In a report published in June, Treasury called the BOJ to focus on the growth, inflation and normalization of Yen’s weakness against the dollar as part of a structure that re -balance bilateral trade, according to The Financial Times.
Bescent’s comments strengthened the yen higher across the board. The Bitflyer listed by BTC/JPY fell to 1.7% to 17,845,432 yen, which posted a bigger losses than Coinbase’s BTC/USD pair, which dropped to $ 121,650. The pair of dollars-yen (USD/JPY) Slipped for the third straight day, hitting a three -week low at 146.21, according to data source tradingview.
Risk-off ahead?
Traders are historically used as a money-carrying money to fund the purchases of property in high yield economies. That is, they exploit Japan’s low interest rates to borrow yen and buy properties that provide a higher return, benefiting from the difference. Like this, yen rallies often induce the fear of avoiding risk in financial markets.
That may not be the case, according to Marc Chandler, chief market strategist at BannockBurn Global Forex.
Risk-off is often the result of not the love of funding trading, e.g. Short yen, long brazilian real (BRL). However, yen may not be the most attractive -attractive funding money today.
“Not only the Swiss policy rate at zero, but JPY’s volatility is higher,” Chandler told CoinDesk in an email.
