Yesterday was marked by a report of the International Monetary Fund. The experts of the fund approve of the Japan’s intention to get rid of deflation pressures.
The Bank of Japan is planning to achieve a 1% annual inflation target by 2017.
In order to meet this goal, the central bank of Japan will have to provide more stimulus to support economic growth and also to cool the yen. In this connection, the IMF says that the Bank of Japan could increase its asset purchases.
The projections published prompted the Japanese yen selling. The USD/JPY went up to the level of 79.65 points.
And yet, the Japanese currency has been well in demand amid woes of Spain and Greece. The yen is traditionally regarded as a safe-heaven asset. Under the conditions of an escalating Eurozone crisis, overall economic slump and rising unemployment, pulling the yen rate considerably down appears to be quite challenging.