Prince said financial news: # yen plummeted again#, and once fell below the 146 mark! What exactly happened behind this?
On Wednesday (12th), the Japanese yen exchange rate against the US dollar plummeted, falling below 146 at one point, the lowest in nearly 24 years since August 1998.
It is worth mentioning that on Wednesday, the yen exchange rate continued to depreciate, which was lower than the lowest value of 145.90 on September 22, when the Japanese government and the central bank of bought the yen and sold the US dollar intervened in the foreign exchange market, as shown in the figure below:
So the question is: Why did the yen fall sharply again? What exactly happened behind it?
In response to this, Nikkei news analysis commented that the main reason is that investors predict that the United States will continue to raise interest rates significantly, so they accelerated the sale of the yen to buy US dollars.
, and Japanese chief official Hiroichi Matsuno also analyzed and commented: "We will continue to pay attention to market trends with a high sense of tension, and at the same time take appropriate responses to excessive fluctuations."
In fact, in the context of the improvement of the employment situation in the United States, the financial market generally believes that Federal Reserve (FRB) will continue to raise interest rates significantly.
market once again realized that the spread of in Japan and the United States has expanded, and they have sold the yen that is not conducive to the use of assets and purchased the US dollar. In addition, as the tension in Ukraine escalates, there is also a trend of purchasing the base currency USD, which has high liquidity.
At the same time, the market is aware of the possibility that the Japanese government and the Bank of Japan will buy the yen again to intervene.
However, in this context, the focus of the market is: how long will the US authorities understand Japan's actions.
In response to this, Japanese financial minister Suzuki Shunichi also said: "I have gained a certain understanding from the US authorities."
In fact, the prince said that finance has also noticed that more and more opinions believe that if the United States' tolerance attitude does not change immediately, Japan may take action again.
, while the US Treasury Secretary Yellen said "basically normal" to the recent foreign exchange market, and has not changed its attitude to tolerating the appreciation of the US dollar at this stage.
In addition, for Japan's actions to prevent the depreciation of the yen, the United States' understanding will continue to be an important factor in the future trend of the yen exchange rate.
What do you think about this? What do you think will happen next?
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