Source: Global Times
[Global Times Report Reporter Xing Xiaojing] The exchange rate of the Japanese yen to the US dollar fell below 146 in the Tokyo foreign exchange market on the 12th, the lowest in nearly 24 years since 1998. Japan Kyodo News said 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. The yen exchange rate continues to depreciate, which is 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 in the exchange market this year.
Japan NHK TV reported on the 12th that Japanese Cabinet Secretary Hiroichi Matsuno said at a press conference that day that he would not comment on the daily trends of the foreign exchange market one by one, but in any case, he will continue to maintain a high sense of tension and pay attention to the trends of the foreign exchange market and take appropriate measures to deal with excessive foreign exchange fluctuations.
"North Economic News " reported that on September 22, when the yen was weak to 145 yen for 1 US dollar, the Japanese government and the Bank of Japan announced the operation of buying yen and selling US dollars to interfere in the foreign exchange market. The Japanese Ministry of Finance spent 2.84 trillion yen (about 19.6 billion US dollars) to curb the depreciation of the yen. This is also the first time since 1998 that the Japanese government intervened in the exchange rate by selling US dollars and buying yen.
yen last depreciated sharply in 1998. Affected by the financial crisis, the atmosphere of " short selling Japan" in the capital market is strong. At that time, the amount of Japanese yen to intervene in the exchange rate was 2.6201 trillion yen. This time, the yen depreciation occurred against the backdrop of stagnation of Japan's exports.
However, the Japanese government and the Bank of Japan intervened in the foreign exchange market more than 24 years ago did not reverse the decline in the yen. The Wall Street Journal said that the Fed will approve another sharp rate hike at its meeting next month, and officials are seeking to raise borrowing costs high enough to relieve inflationary pressures.
NHK quoted market-related analysts as saying that the strong employment situation in the United States has led to a spread of speculation about a sharp interest rate hike. Coupled with Ukraine's tensions, there are also trends in buying US dollars in geographically far away from the United States. The Japanese government and central bank's market intervention further led to the depreciation of the yen, which made investors more vigilant about whether Japan will interfere in the market again.
Kyodo News said that the financial market generally believes that the Fed will continue to raise interest rates sharply. The market once again realized that the spread of in Japan and the United States had expanded, and sold the yen to buy US dollars. Bloomberg said businesses have warned of the negative impact of the yen's lower yen on Japan's domestic economy, and Japanese families are preparing to deal with the cost of living crisis amid inflation taking off.
