The yen strengthened with force on Thursday, after the Japanese authorities intervened in the foreign exchange market for the first time since 1998 to shore up the battered currency. The dollar fell as low as 140.31 yen and later fell 1.2% to 142.37 yen in highly volatile trading. The euro, the Australian dollar and the British pound also fell against the Japanese currency.
It was Japan’s first intervention in the foreign exchange market to prop up the yen since 1998 and came in the wake of the central bank’s decision to keep interest rates ultra-low, sending the currency down. “What Japan is doing is sending a signal that raising the dollar/yen is not a free ride,” he said. Jane Foleyhead of foreign exchange strategy at Rabobank in dialogue with Reuters.
However, he added: “Given that the Bank of Japan has just implemented a very loose monetary policy, just after the Federal Reserve has adopted a more aggressive stance, I think the fundamentals will push the dollar/yen higher.”
The euro weakened against the US currency, hitting a new 20-year low of $0.9807, and the pound sterling fell to a new 37-year low of $1.1213, although it recovered to $1.1250 following the Bank of England’s announcement to raise interest rates by 50 basis points.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
