Japanese Yen (JPY) Declines Against USD Sparking Bitcoin Investor Interests
Japanese Yen Declines and Investor Interest in Crypto Increases
The Japanese Yen (JYP) has decreased in value and the Bank of Japan, which adopts a loose monetary policy, offered few changes to potentially resolve the issue. The decline may also be attributed to the ongoing trade-war conflict between the United States and China, the devaluation of other currencies, and a shift in investors’ interests to other long-term options – such as crypto.
Japan’s minimal tweaks to its policy included attempting to create a more flexible framework for the long-term. Further, rates would remain, “very low” according to the bank’s governor. Of course, keeping rates low has an effect upon the value of the currency against the U.S. dollar and accordingly, the JPY saw losses against the USD on Tuesday. The rate of USD to JPY is 111.50.
It is believed that the bank’s lack of involvement is ultimately causing the Japanese Yen to decline. However, there are others who believe that the yen will get stronger as the Bank of Japan attempts to prevent yields from increasing. Further, the political developments in Japan may also be an influential factor.
Finally, a global-stock selloff and the threat of putative duties on Japanese car manufacturers can impact the Japanese economy and its currency negatively. All of these qualities may further push investors toward cryptocurrency as a viable solution.