FOCUS: As BOJ diverges from peers, yen weakness a tolerance test

Politics Economy

The yen's value may further slide and test the tolerance of price-sensitive consumers -- and Japanese policymakers. The biggest driver would be the divergence between the U.S. Federal Reserve, which has apparently entered a rate hike cycle, and a dovish Bank of Japan with repeated commitment to keeping powerful monetary easing for an extended period. Surging crude oil and commodity prices in the aftermath of Russia's invasion of Ukraine have pointed to the worsening of the current account balance of the resource-poor Japan, supporting yen weakness. More broadly, the prospect of yen depreciatio...

Kyodo News

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