Yen Volatility Is Far From Over With Investors Split on Outlook
- Currency whipsawed in wild hour of trading after BOJ decision
- Impact of BOJ shift is reverberating through global markets
The Japanese currency fluctuated broadly around the 140 per dollar level after the decision.
Photographer: Kiyoshi Ota/BloombergThis article is for subscribers only.
The yen’s wild ride in the aftermath of a surprise tweak to Japan’s yield-curve control program may be only the beginning, with a divergence of views on where the currency goes from here.
After four straight days of strengthening versus the dollar, the yen whipsawed when Bank of Japan Governor Kazuo Ueda wrong-footed traders around midday Friday in Tokyo with a policy statement that markets are still trying to digest. The currency weakened around 1%, only to strengthen by the same amount, and then start depreciating again — all within an hour. The choppiness continued throughout his press conference, even as the magnitude of the moves narrowed.