Central Bank Monetary Policy Impacts Market Trust in Currency: Kuroda
Arslan Butt•Thursday, May 9, 2019•1 min read
Bank of Japan Governor Kuroda addressed the Japanese Parliament, stating that investor confidence in the central bank is the main driver influencing market trust in the Yen.
According to Kuroda, exchange rate fluctuations are not enough of a factor for market trust in the yen. The power of a currency depends on several other factors beyond how its price varies when compared with other currencies.
Investor confidence in a central bank’s monetary policy also has a significant role to play in determining the true value of a nation’s currency.
USD/JPY has been trading lower today at 109.93 after dropping below 110, at the time of writing.
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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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