Japanese Yen: Inflation curve debate shapes outlook – Rabobank
The post Japanese Yen: Inflation curve debate shapes outlook – Rabobank appeared on BitcoinEthereumNews.com. Rabobank’s Senior FX Strategist Jane Foley discusses the Japanese Yen’s (JPY) recent strength and questions whether the Bank of Japan (BoJ) is truly behind the inflation curve. Foley highlights JGB auction strength, rising foreign ownership of Japanese debt, and BoJ inflation forecasts, while stressing that fiscal concerns and cautious rate hikes continue to limit a sustained JPY recovery. BoJ credibility and JPY performance “In August last year, US Treasury Secretary Bessent stated that the BoJ is “behind the curve on inflation” and indicated that the Japanese monetary authority would be hiking interest rates. At that time Bessent stated that there was risk of “leakage,” meaning that higher JGB yields could potentially drive up those in other bond markets including US treasuries. Moreover, since Japanese investors are the largest foreign holders of US debt, the US Treasury is l