Japanese Yen Plunges to 32-Year Low Against US Dollar — Another Intervention by Authorities Expected

The Japanese yen’s exchange rate versus the U.S. dollar recently plunged to its lowest rate in 32 years — 147.66 JPY per dollar. The yen’s latest fall comes less than a month after its slip in September prompted authorities to enter foreign exchange markets for the first time since 1998.

Vsebina

Gap Between US Treasuries and Japanese Government Bonds Widening

The Japanese yen fell to a rate of 147.66 per dollar, its lowest exchange rate versus the U.S. dollar in 32 years, je pisalo poročilo. The yen’s latest record-breaking fall came after official figures from the United States showed that prices had gone up faster than anticipated. ZDA. Federal Reserve has been using rate hikes to tame inflation but these have in turn caused the dollar to strengthen against other global currencies.

Vendar, unlike other central banks that have followed in the footsteps of the U.S. Federal Reserve and raised interest rates, the Bank of Japan (BOJ) is said to have maintained an “ultraloose monetary policy.” Investors have in turn responded to the resulting gap between U.S. Treasuries and Japanese government bonds by selling the yen.

As poročali by Bitcoin-Tidings.com News in September, when the dollar’s rise caused the yen to slip to a 24-year low versus the greenback, the BOJ responded by intervening in foreign exchange markets for the first time since 1998. According to a BBC poročilo, authorities in Japan are again likely to respond to the yen’s latest plunge with another intervention.

The report quotes the Japanese Finance Minister Shunichi Suzuki who suggests that “appropriate action” will be taken to stop the yen from slipping further.

“We cannot tolerate excessive volatility in the currency market driven by speculative moves. We’re watching currency moves with a strong sense of urgency,” Suzuki reportedly said.

Preventing an ‘Adverse Financial Amplification’

In late September 2022, when the Japanese currency fell against USD by more than two yen in one day, the Japanese authorities responded by spending nearly $20 milijarde. While the intervention did help to stabilize the yen, some analysts still questioned the sustainability of such a solution.

Vendar, in a new blog post, Mednarodni denarni sklad (IMF) suggested that a temporary foreign exchange intervention may be the most appropriate solution. As explained in the blog, such a foreign exchange intervention can “help prevent adverse financial amplification if a large depreciation increases financial stability risks, such as corporate defaults, due to mismatches.”

In addition to helping to diminish the threat to financial stability, foreign exchange intervention could also potentially aid a country’s monetary policy, notes the IMF.

“Finally, temporary intervention can also support monetary policy in rare circumstances where a large exchange rate depreciation could de-anchor inflation expectations, and monetary policy alone cannot restore price stability,” the IMF blog explained.

Oznake v tej zgodbi

Kaj menite o tej zgodbi?? Sporočite nam svoje mnenje v spodnjem oddelku za komentarje.

Terence Zimwara

Terence Zimwara je zimbabvejski nagrajeni novinar, avtor in pisatelj. Obširno je pisal o gospodarskih težavah nekaterih afriških držav in o tem, kako lahko digitalne valute Afričanom zagotovijo izhod v sili.














Zasluge za slike: Shutterstock, Pixabay, Wiki Commons

Zavrnitev odgovornosti: Ta članek je zgolj informativne narave. Ne gre za neposredno ponudbo ali nagovarjanje k ponudbi za nakup ali prodajo, ali priporočilo ali odobritev katerega koli izdelka, storitve, ali podjetja. Bitcoin-Tidings.com ne zagotavlja investicije, davek, pravni, ali računovodski nasvet. Niti podjetje niti avtor ne odgovarjata, neposredno ali posredno, za kakršno koli škodo ali izgubo, povzročeno ali domnevno povzročeno z ali v povezavi z uporabo ali zanašanjem na katero koli vsebino, blaga ali storitev, omenjenih v tem članku.

Preberi zavrnitev odgovornosti