BOJ's fight to defend yield cap feeds weak yen cycle

Speculators sell JGBs, waiting for Kuroda to capitulate amid inflation

The yen has softened beyond 136 to the dollar for the first time in 24 years. © Reuters

AKIRA INUJIMA, TOSHIHIRO SATO and RYO SAEKI, Nikkei staff writers

June 23, 2022 04:59 JST

TOKYO -- The yen's continued slide is spurring speculators to sell Japanese government bonds in anticipation of a retreat by the Bank of Japan from its easy monetary policy, fueling a self-perpetuating loop as the central bank continues to defend its ultralow interest rate target.