The Bank of Japan goes against it

Reached this morning Price USD / JPY at the level of 126 yen, it means that the Japanese currency seems to be the weakest against the American one in nearly 20 years. Reason? Commitment Bank of Japan to maintain an ultra-loose monetary policy may contrast with the actions of other major central banks in the world, which seem to normalize monetary policy.

Jen is falling, the bank is not going to react

Shunichi Suzuki, Japan's finance minister, declined to comment on the specific rates in the foreign exchange markets on Tuesday. He said the government is closely monitoring the performance of the yen and that excessive volatility could have a negative impact on the economy and financial stability.

The Bank of Japan has repeatedly intervened to keep bond yields close to zero. Recently, however, Shunichi Suzuki has cooled hopes of any government intervention in the currency markets, saying the central bank is not dealing with exchange rates.

Since the beginning of the year, the yen seems to be the weakest among the world's major currencies and may lose more than 8% up to USD. Only from the beginning of April, the depreciation of JPY against the USD may reach 3,5%.

Inflation 8,5% - feet up 

In the United States, after inflation rose to 8,5% in March, the US dollar seems relatively strong, with the main currency pair stuck around 1,08.

The market may expect that in response to the rise in prices, the Fed will decide to raise interest rates by 50 bp two in a row. Such a move is valued today with over 80% probability, and the next decision will be made on May 4.

Oil: China's demand falls, the US rises

On the market oil increased volatility may arise. The WTI oil futures contract surged today to around $ 100 a barrel, falling from the session high of $ 102.

According to the data of the Chinese customs office, the import of crude oil to the world's largest consumer of this commodity fell for the second month in a row. Probably because successive restrictions caused by the coronavirus have dampened demand. Japan, the world's third largest consumer and importer of crude oil, saw the largest monthly decline in machinery orders in almost two years in February.

There are still concerns that supplies may become even more constrained by the war in eastern Europe. OPEC he had previously warned that it would not be able to replace potential losses in supplies from Russia. At the same time, there could be a strong demand for fuels in the US, where gasoline and distillate inventories fell by more than 5 million barrels last week.