The Japanese yen is tumbling.
The currency is down by 0.9% at 104.44 per dollar as of 11:41 a.m. ET, and is now around levels previously seen in late July.
Notably, the yen saw some early selling pressure snowball once it broke through the 104.00 per dollar level.
“With the Bank of Japan now committed to keeping 10yr JGB yields anchored around 0%, the upward near-term outlook for non-Japan rates implies that rate differentials are likely to widen against the JPY in coming weeks,” argued a Credit Suisse research team led by Shahab Jalinoos in a note to clients published earlier on Wednesday.
“As such, we revise our USDJPY outlook higher from 95 to 100 in 3m and in 12m.”
Separately, data released earlier showed that core machinery orders fell 2.2% month-over-month in August, better than expectations of a 5.5% drop. On a year-over-year basis the figure rose 11.6%, better than the 6.5% that was expected.