The Japanese yen continues to surge against the dollar this morning.
One of the most consensus trades on the planet is betting that the yen will decline against the dollar as Japan implements aggressive monetary policy designed to reflate the economy.
However, last night’s Japanese consumer prices release revealed that deflation is getting worse. And while the Bank of Japan upped its economic forecasts at its policy meeting this morning and said it would hit its lofty 2% inflation target within two years, the market appears to be expressing serious doubts over the BoJ’s ability to further weaken the yen today.
The dollar-yen exchange rate is trading at 97.70, down 1.6% and just off its lows of the day. It keeps moving further and further away from that landmark 100 level, which hasn’t been seen since April 14, 2009.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.