1 month ago
Yen Surges as Japan Intervenes in FX Market
The Japanese yen, the money used in Japan, fell a lot against the US dollar.
To stop it from falling more, Japan’s government and its central bank bought a huge amount of yen in the market.
This made the yen stronger, and it rose about 3.3% in one day.
Experts think this might lead the Bank of Japan to raise interest rates soon.
The move shows how much Japan cares about keeping its currency stable.
Yen rose 3.3% against the dollar, the biggest intraday gain since December 2023.
Nikkei reports Japan’s Finance Ministry and Bank of Japan stepped into the market to support the yen.
The intervention followed a record ¥11.73 trillion purchase of the currency in the open market last quarter.
Analysts say the move may prompt the Bank of Japan to raise rates at its upcoming policy meeting.
The yen’s surge comes amid a widening interest‑rate gap between Japan and the United States.
- Who
- Japanese Finance Ministry and Bank of Japan officials
- What
- Intervened in the foreign‑exchange market to support the yen
- Where
- Tokyo and New York trading session
- When
- Thursday, 2024
- Why
- To counter the yen’s depreciation amid rising oil prices, budget deficits, and a widening interest‑rate gap with the United States
Key facts
- Currency
- Japanese yen
- Exchange rate
- 159.53 per US dollar
- Intervention amount
- ¥11.73 trillion
- Date
- Thursday, 2024
- Central bank
- Bank of Japan
- Market
- Foreign exchange market
Quotes
Takeru Yamamoto
Trader at Sumitomo Mitsui Trust Bank
“"Intervening now could make investors think twice about selling the yen," said Takeru Yamamoto, a trader at Sumitomo Mitsui Trust Bank in New York.”
livemint.com
“"The scale of the move strongly suggests intervention," said Geoffrey Yu, a senior strategist at BNY.”
livemint.com
Sources
Related news
Yen Surrenders Nearly Half Its Gains From US-Japan Intervention
Yen Weakens 1%, Erases Half of Intervention Gains
Yen Breach of 160 Revives Japan Intervention Watch
Yen Intervention Gains Fade as Rate Gaps Drive Decline
Yen Firms After Landmark Intervention, Dollar Near Six-Week Lows
Japan Sets July Export Record Despite Third-Month Trade Deficit
Japan, US Launch Rare Joint Yen Intervention, Signal More Action
