Moody’s Investor Services may end up placing Japan’s Aa2 local and foreign currency bond rating up for review this month; a move which has placed significant strain on the value of the Japanese yen. The move by Moody’s comes just days after the Fitch ratings agency downgraded its debt outlook for Japan.
The JPY was recently seen plummeting against several of its currency rivals as traders anticipate a shift in value for their yen holdings. A Moody’s report noted that faltering industrial data and a dovish response by the Bank of Japan (BOJ) to address debt has instigated a review of Japan’s bond rating in lieu of its ability to effectively tackle a deficit reduction.
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