The Japanese yen extended its rally today, erasing its losses since the Bank of Japan step in to weaken the currency and causing the speculation that the Bank would perform another intervention. The yen also rose versus the Great Britain pound but fell against the euro.
Japan intervened on September 15th to stem the yen’s gains, which could hurt the nation’s exports. This moved dropped the yen significantly down but hadn’t
Japan seems be unable to compete with the US with its quantitative easing, which moves the dollar down ahead of other currencies. As other countries start attempts to limit their currencies’ gains the concerns arise about the “currency war”, as it was called by the Brazilian Finance Minister Guido Mantega. The Minister of Finance Yoshihiko Noda said he’s prepared to explain the reasons for Japan’s intervention to his G-7 counterparts.
USD/JPY fell from 83.22 to 82.89 as of 21:36 GMT today, following the decline to 82.75, the lowest level since Japan’s intervention. EUR/JPY rose from 115.16 to 115.46 after it dropped to the intraday low of 114.68. GBP/JPY went from 132.21 down to 131.69.
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