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Here is something interesting for you concerning the USD/JPY

Before I go into detail about what I am going to tell you, this news is not fresh and was reported earlier today in the Nikkei newspaper. Now according to that article a leading Japanese Bank has raised considerably the rate they offer Japanese clients to hold deposits in US dollars, from a poultry 0.1% to a massive 5.3%, for money held for a minimum of 6 months. If correct, this is a massive shift and could have significant implications over time for the USD/JPY, especially if other Japanese Banks follow suit. Now the thing is; why would such institutions risk the inflow of such large capital sums in dollars at a time when the Bank of Japan is closely watching the USD/JPY exchange rate and the rate is on 2023 highs?  Something to ponder for sure and I cannot personally believe such institutions would risk the ire of the BOJ, unless they plan to have huge unhedged dollar short positions, in the knowledge that they might profit from such. Perhaps one day I will be able to answer that, but not now at any rate. The USD/JPY has steadied just now from the earlier interim dip and is currently trading at 146.69
 

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