The yen (JPY) reinforced by the dollar (USD) and bitcoin
After the American Treasury Secretary Scott Bessent said that the Bank of Japan was behind the curve on inflation and will probably have to increase interest rates.
“The Japanese have an inflation problem … They are behind the curve, so they will hike, and they have to control their inflation problem,” said Bessent in an interview with Bloomberg TV.
The taking of Bessent contrasts with that of the governor of Boj Kazuo Ueda, who justified to move slowly on the rate increases because underlying inflation, which focuses on the force of demand and domestic wages, remains unless the objective of the central bank, even if the rate of the head is greater than 3%. In July, the bank held its stable reference interest rate at 0.5% while providing no index on future movements.
The Trump administration has been calling for a stricter monetary policy in Japan for months to stop the amortization of the Yen and reduce the rate differential between the two currencies. In a report published in June, the Treasury called on the BOJ to focus on the growth, inflation and normalization of the weakness of the Yen against the dollar in the context of a structural rebalancing of bilateral trade, according to the Financial Times.
Bessent’s comments have strengthened the Yen above in all areas. Bitflyer listed the BTC / JPY pair fell from 1.7% to 17,845,432 yen, displaying greater losses than Coinbase BTC / USD pair, which dropped to $ 121,650. The pair of dollars (USD / JPY) According to Data Source TradingView, a third consecutive day, reaching a three -week 146.21 below.
Risk to come?
Merchants have historically used YEN as a transport currency to finance asset purchases in high -efficiency savings. In other words, they have exploited the low interest rate of Japan to borrow the yen and buy assets that give higher return, benefiting from the difference. As such, gatherings in the yen often trigger fears of risk aversion to financial markets.
This may no longer be the case, according to Marc Chandler, chief strategist of the market at Bannockburn Global Forex.
Risk is often the result of the development of financing transactions, for example in short yen, long real Brazilian (BRL). However, the Yen may not be the most attractive funding currency at present.
“Not only is the Swiss policy rate zero, but Jpy’s volatility is higher,” Chandler said in Coindesk in an email.
