The unknowns surrounding the war in Ukraine continue to swirl. USDJPY has risen, along with commodities prices. But risk aversion has supported lower JPY rates, and USDJPY basis has widened. Japanese investors have been covering their USD fund positions ahead of the fiscal year-end, but MoF data shows that foreigners have been cutting their exposure to Japan stocks even as purchase JGB asset swaps.
In today’s episode, MUFG Chief Japan Strategist Takahiro Sekido previews the Bank of Japan’s March Monetary Policy Board meeting. He also discusses the impact of the war in Ukraine on Japan’s bank sector and domestic inflationary pressures as shown in corporate prices as well as shares his views on Dollar/Yen, Yen rate, and Yen basis.
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