Bloomberg Surveillance · Thursday, July 9, 2026
Standard Chartered Bank views the Japanese yen's current weakness as a significant problem, with the Bank of Japan appearing 'stubborn' and the economy lacking dynamism. While market volatility for dollar-yen is low, suggesting a lack of expectation for further yen depreciation, the bank highlights massive capital outflows as a key factor keeping the yen weak. Intervention is seen as increasingly difficult.
“Praying for rain? Look, I think they have a problem. I mean, the boj looks stubbish. The economy doesn't look great. Yeah, it doesn't look terrible, don't there's nothing exciting there.”
“But the sort of market is pricing the probability that the end goes down at very low levels. Right now, the volve for the downside for dollar yen is really who So they don't think it's got anywhere to go to the downside.”
“And there's massive capital outflows?”