FX.co ★ Greenback’s masterful jump above seven-year high against yen

Another record was hit by the U.S. dollar against the Japanese yen. According to trading statistics, the buck reached a seven-year high versus Japan’s unit. Currently, the U.S. dollar confidently demonstrates steady growth against the shared European currency. But this growth seen since the end of the last month is considered to be “too high” by market players. It is noteworthy that the Bank of Japan warned that inflation – the key issue of "Abenomics" – may fall below 1 per cent, thus missing the target level in the upcoming fiscal year. Japan is preparing for elections next month, and Prime Minister Shinzo Abe intends to implement the second phase of the plan on increasing the sales tax. Comments of the BOJ officials again raised questions about the effectiveness of "Abenomics", monetary policy, flexible fiscal policy, and structural reforms aimed at fighting deflation. On assuming office, the current prime minister promised to return Japan to the path of sustainable growth. The sales tax in Japan was increased from 5 per cent to 8 per cent this April. It was the first change in the law since 1997.