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Bank of Japan Intervenes in Foreign Exchange Markets After Yen Slips to 24-Year Low – Economics Bitcoin News


While the greenback edged higher, the Japanese yen touched a 24-year low and Japan decided to intervene in the foreign exchange (forex) market for the first time since 1998. Reports say the Bank of China. Japan’s central bank conducted its first foreign exchange intervention in 24 years. , after the central bank of Japan kept the exchange rate unchanged, the bank is preparing to hold back for quite a long time. Following the intervention, the yen rallied as the US dollar fell sharply against the Japanese yen in Thursday’s trading sessions. However, the greenback has rallied again and the yen’s recent gains are starting to waver.

The yen’s struggle leads the Bank of Japan to enter the buying side of the foreign exchange market for the first time in more than two decades.

The US Dollar has been a prominent force in the world of fiat currencies and more recently the Japanese yen hit a 24 year low This prompted the Bank of Japan to intervene. Reuters detailed on Thursday that it was the first time Japan’s central bank had entered the foreign exchange market since 1998 to prop up the falling currency. This is the first buy-side intervention since 1998 when the Bank of Japan sold the yen using physical intervention methods in 2011.

Bank of Japan intervenes in foreign exchange market after Yen falls to 24-year low
JPY/USD for the past six months. Following the foreign exchange intervention of the Bank of Japan, the yen rose slightly against the greenback.

After the intervention, the Japanese yen appreciated but Exchange rate JPY / USD still shows that the yen has fallen a lot against the greenback over the past six months. Speaking to marketwatch.com author Steve Goldstein, Michael Hewson, chief market analyst at CMC Markets UK, is questioning the yen’s long-term decline.

“The big question is whether it will make a difference and change the long-term downtrend of the Japanese yen,” Hewson said. detail on Thursday. “The 145/146 level seems to be the level the Bank of Japan seems to want to protect at the moment as last week’s exchange rate test happened around similar levels.”

Chinese Yuan, EU Euro and More Fiat Currencies Beat the Greenback Strongly – Yen Intervention Begins to Rise

The yen isn’t the only fiat currency struggling like the Chinese yuan continue depreciated against the greenback. After reaching parity with the US dollar again this week, the European Union euro is now at $0.98 against the US Dollar at the time of writing.

Bank of Japan intervenes in foreign exchange market after Yen falls to 24-year low
The US Dollar Index (DXY) is a measure of the USD against a basket of six major fiat currencies.

Masato Kanda, Japan’s deputy finance minister in charge of international affairs, explained that the yen’s recent 24-year slump prompted officials to “take decisive action in the foreign exchange market”. At the time of writing, US Dollar Index (DXY) chart spiked to 111,448 and the yen’s gains in the morning trades (ET) are slowly being erased. In addition to a large number of fiat currencies, crypto assets, precious metaland stocks are also being beaten by the US dollar on Thursday afternoon (ET).

Cards in this story

1998, Lowest level in 24 years, Bank of Japan, benchmark interest rate, BOJ, Buyer, Buy-side forex market, Dollar, USD, currency fall, fiat currency, Forex market, Forex, Green silver coin, Involvement, Japanese yen, low interest rate, Michael Hewson, Steve Goldstein, U.S. dollar, U.S. dollar, U.S. dollar

What do you think about the Japanese yen sliding to a 24-year low and the Bank of Japan stepping in to rectify the situation through the foreign exchange market? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a fintech journalist living in Florida. Redman has been an active member of the crypto community since 2011. He has a passion for Bitcoin, open source and decentralized applications. Since September 2015, Redman has written over 6,000 articles for Bitcoin.com News about the groundbreaking protocols emerging today.




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