Business confidence at large manufacturers in Japan improved and suggested that inflation expectations amongst firms steady in the first quarter of 2024, according to the Bank of Japan's quarterly Tankan survey on Monday. The headline large Manufacturers' Sentiment Index came in at 11.0 from the previous reading of 12.0, better than the market expectation of 10.0. Further details unveil that the large Non-Manufacturing Outlook for the first quarter arrived at 27.0 versus 24.
The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns of its main trading partners. The current BoJ ultra-loose monetary policy, based on massive stimulus to the economy, has caused the Yen to depreciate against its main currency peers.