The yen has completely given up resistance!

April 26thBandarpokerThe monetary policy meeting of the Bank of Japan decided to keep the current monetary policy unchanged and keep the policy interest rate target at 0 to 0BandarpokerBetween .1%. Then the yen plummeted. As of 5: 00 Beijing time on the 27th, the yen had depreciated toBandarpoker158 at the mostBandarpoker. 4455 to the dollar, the lowest in about 34 years since May 1990.

Because the depreciation of the yen can promote the entry of foreign capital into Japan, which in turn drives up Japanese consumption and drives up Japanese inflation. At the same time, it is also conducive to Japan's exports. Recently, Japan's economic recovery is also very obvious. As a result, the market believes that Japan seems to be trying to make the best use of its currency devaluation to boost its domestic economy.

So how much impact will the depreciation of the yen have on the world? Analysts believe that the sell-off of the yen will increase demand for the dollar, which in turn will increase the pressure on emerging market currencies. At the same time, the more the yen depreciates, the more likely it is for the Japanese government to intervene. Once intervened, there are bound to be "rough waves" in global stock and foreign exchange markets, which is tantamount to the arrival of a super "black swan".

The Japanese yen has made history again.

This morning, USDJPY closed with a bald and sunny line. As of 5: 00 Beijing time on the 27th, the yen had depreciated to as much as 158.4455 to the dollar, a 34-year low since May 1990, and a daily depreciation of nearly 2 per cent was also rare in history.

In the week of April 23, traders, including hedge funds and asset managers, held more than 184180 yen short contracts, breaking the previous week's record (since records began in 2006), according to the Commodity Futures Trading Commission (CFTC) Weekly report. Meanwhile, the yen fell to its lowest level against the euro in nearly 16 years, at 168.23, and against the Australian dollar to its lowest level in nearly a decade.

So, what happened? The monetary policy meeting of the Bank of Japan decided on the 26th to keep the current monetary policy unchanged and keep the policy interest rate target between 0 and 0.1%. This may be the main reason. Kazuo Ueda, governor of the Bank of Japan, also made it clear that he had no intention of saving the weak yen. "there is little sign that the Bank of Japan is considering raising interest rates in the short term," said Prashant Newnaha, senior Asia-Pacific interest rate strategist at TD Securities in Singapore.

Associate Professor, School of Business, Waseda University, Japan