Friday saw the Japanese yen continue sliding against the world’s reserve currency as the monetary unit plunged to its lowest value in 30 months in anticipation of the Bank of Japan convening for two days early next week for policy meetings, Reuters reports.
The central bank is believed to be ready to intervene to spur the world’s third-biggest economy, which also draws down the yen. New Prime Minister Shinzo Abe has repeatedly noted his preference to implement monetary easing policies.
“We think there is some risk of disappointment at the BOJ meeting and scope for a yen rally,” currency strategist Kiran Kowshik with BNP Paribas told Reuters on Friday. “It is now consensus that the BOJ will move to a 2 percent inflation target. However, more aggressive measures may not come until closer to the nomination of the new governor/deputy governors in Q2.”
The two days of meetings will be on Monday and Tuesday.
A former professor from Yale University has been serving as an advisor to Abe regarding who should be the next administrators of the central bank, Bloomberg reports. The prime minister must name a new governor and two deputies in March and April.
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