Bank of Japan Faces Pressure as Markets Sink
TOKYO—Global markets are frustrating the Bank of Japan’s efforts to generate higher inflation, heightening expectations that the central bank will undertake additional monetary easing.
Concerns about a worse-than-expected slowdown in China have sunk stock and commodity markets, leading the yen to strengthen as investors seek safety and raising doubts about whether the U.S. Federal Reserve will begin raising interest rates next month. Oil prices are at six-year lows, having already caused the BOJ to push back its target date for achieving its 2% inflation goal.
It all adds pressure on a central bank that faces a flagging domestic recovery and inflation that is stuck near zero. Japan’s benchmark stock index—which Tokyo sees as a barometer of policy success—has lost 14% of its value over the past week. The BOJ’s favored measure of inflation, due to be released Friday, is widely expected to have turned negative last month.
“The global environment has changed so much that I’m sure that…it will encourage the BOJ to take measures,” said Osamu Takashima, chief foreign-exchange strategist at Citigroup.
http://www.wsj.com/articles/bank-of...yen-rises-sharply-abe-adviser-says-1440472811
I am waiting and waiting. I got potential exposure for my trip to around 15k SGD
Even at that exposure, i only "lost" around 75000 Yen. which is less than 1k SGD
