Please try another search
© Bloomberg. A dealer works near monitors showing the rate of the yen against the US dollar in the trading room at foreign exchange brokerage Gaitame.Com Co. in Tokyo, Japan, on Friday, Oct. 21, 2022. The yen’s slump past the symbolic mark of 150 per dollar is keeping traders guessing when Japanese authorities will intervene to halt a further decline. Photographer: Toru Hanai/Bloomberg
(Bloomberg) -- The yen soared against the dollar amid speculation Japanese authorities are intervening again to prop up the currency.
The currency surged as much as 2% to an intraday high of 147.1965 per dollar. It had earlier fallen to a fresh 32-year low of 151.95 despite a barrage of official warnings against testing its intervention strategy.
Authorities have repeatedly said they will step in to counter one-sided moves, although some analysts warn that any intervention will have limited impact as long as the Bank of Japan maintains a policy of rock-bottom interest rates while peer central banks hike.
In September, the government intervened to support the currency for the first time since 1998 after it weakened to 145.90 per dollar. The Ministry of Finance spent almost $20 billion in September to limit the currency’s losses.
Finance Minister Shunichi Suzuki, speaking to reporters this week, reiterated the country will take appropriate action against speculative moves. Bank of Japan Governor Haruhiko Kuroda has made clear he has no intention to change the rock-bottom interest-rate policy that is contributing to the yen’s slide.
The yen has slumped to a 32-year low this year as traders focused on the widening yield gap between the US and Japan, with the former hiking rates aggressively and the latter keeping them low to boost a sluggish economy. That encourages investors to seek out the more attractive returns in dollar assets compared to Japanese ones.
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.