#monetary-policy-divergence

#monetary-policy-divergence

From my perspective, this decline is not merely a short-term move but a reflection of deeper shifts in global monetary sentiment-specifically the narrowing gap between the two countries' policies, which has already begun translating into accumulated selling pressure on the pair. Market behaviour during Thursday's session is clear: the entry of new sellers reflects a lack of confidence in the dollar's ability to maintain its momentum, especially after failing to capitalize on the modest rebound from 155.65, the lowest level in a week.

The Japanese Yen continues to weaken, reflecting the policy divergence between the Bank of Japan (BoJ) and other major central banks. Following its latest meeting, the BoJ kept its policy rate unchanged at 0.5%. Although Governor Kazuo Ueda signalled that the bank is "ready to adjust" policy if wage growth and inflation continue to rise sustainably, recent data have not been strong enough to justify an immediate change.