Masaka Amamiya, deputy governor of the Bank of Japan, is rumored to be succeeding Haruhiko Kuroda, who will step down as governor on April 8. Since Masaka Amamiya played an important role in formulating a large-scale stimulus plan and has always supported implement very low interest rate policies, it means that if it is chosen Take over, I think that Japan’s monetary policy will remain unchanged, along with recent geopolitical tensions, dragging down the yen exchange rate, which fell about 1% against the US Dollar yesterday, as low as 132.43, and fell 0.7% to 132.12 at 8 pm One hundred yen was quoted at 5.92 against the Hong Kong dollar.
Planning many unconventional mitigation policies
According to Japanese media reports, the 67-year-old Masakashi Amamiya, who has the title “Mr. BOJ” (Mr. BOJ), has the opportunity to take over the post of governor of the Bank of Japan. data, he was responsible for drafting most of the Bank of Japan’s monetary policy ideas and planning Many unconventional monetary easing policies, such as the quantitative easing policy in 2001; the comprehensive monetary easing policy in 2010; the quantitative easing (QQE) policy. ) in 2013, and the short-term and long-term interest rate operations (yield curve management) that have continued to this day, the market Therefore, it is expected that once Amamiya takes over as governor, Japan’s monetary policy will remain freely, which will lead to a fall in the exchange rate of the yen.
Commerzbank said Amamiya is considered an ally of current BOJ Governor Haruhiko Kuroda, meaning his nomination would justify the BOJ’s continuation of its ultra-loose monetary policy. Subsequently, the Japanese government hastened to deny the relevant rumours.
Hang Wing OCBC: Support at 5.92
Wing Hang Bank OCBC pointed out that the yen had fallen below the 132 mark against the US dollar. First, the US non-agricultural employment report last month was much better than market expectations, leading to a rebound in the dollar; second, the US-Japan interest rate differential widened significantly. In the short term, attention should be paid to the fact that the Japanese government will present a candidate for the next deputy governor of the Bank of Japan this Friday (February 10). As the candidate can have a profound impact on monetary policy in the next five years, the short-term volatility of the yen cannot be discounted or increased. The short-term support level against the US dollar is expected to be 132, and the resistance level is 132.56. The support level against the Hong Kong dollar is 5.92, and the resistance level is 5.95.
ANZ strategist John Bromhead told the media that Masaka Amamiya is definitely “dovish”, so if the news that he will take over is true, the dollar will be strongly supported against the yen, but if the news is rejected, the dollar will be fast. fall back against the yen. Below 130, that is, the Yen against the Hong Kong dollar will also be recalculated by 6.
The ongoing interest rate gap between the yen and the US dollar has kept the yen weak. Last year, it lost about 14%. In January this year, it rose by 0.77%. It has temporarily fallen by about 1.5%. so far this month.
Original article published on AM730 https://www.am730.com.hk/Finance/Finance/Yen falls below 6 again-Dovish-Masaka Amamiya passes on to take over central bank/360099?utm_source=yahorss&utm_medium= referral
