The Japanese yen continued to rise today as the Group of Twenty meeting last week hasn’t provided decision, which could change the behavior of the currencies.
The Bank of Japan confirmed its readiness to intervene in order to weaken the currency for protection of the nation’s exporters. Japan’s companies already reported the earnings, which declined because of the stronger yen. The analysts think the central bank wouldn’t intervene in the near term, attempting to gauge the influence of the strong currency on the economy before taking any significant actions.
The “competitive devaluation” was one of the main issues, discussed on the past meeting. Yet there wasn’t any cohesive plan to prevent the countries to weaken their currencies, so Japan may feel free to do as it deem necessary.
USD/JPY went down from 81.37 to 80.61 today as of 16:07 GMT and reached the intraday low of 80.41 GBP/JPY fell from the opening level of 127.44 to 126.93, following the decline to 126.45.
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