ITC: The depreciation of the yen appears unusually gradual

Golden Ten Data reported on July 1 that Sean Callow, Senior FX Analyst at InTouch Capital Markets, stated that the most remarkable aspect of the yen's depreciation over the past few weeks has been the relative calm and orderliness of the exchange rate movement. He added that USD/JPY has shown a mild upward trend, without the kind of sharp volatility Japanese authorities usually cite as justification for intervention. Callow pointed out that declining oil prices should have provided some support for the yen, but interest rate factors remain the key driver dominating the market. Solid U.S. economic data has reinforced market expectations for a Federal Reserve rate hike this year; although the Bank of Japan took action in June, a 1% yield is not attractive for a currency trading near a 40-year low against the dollar.