More than half of analysts surveyed by Reuters indicated that if the yen falls below 145 per US dollar, the Japanese government and central bank will take action to arrest the collapse.
Following their meeting last month when the yen was close to reaching a six-month low and in advance of the Bank of Japan’s (BOJ) rate review that will end on Friday, market players keenly monitor how the government and the BOJ respond to currency movements.
A reversal of easing, including a change to the yield curve control (YCC) scheme, is anticipated by around half of respondents to the survey, who expect the BOJ to continue current policy this week.