Bitcoin News

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

Bank of Japan Intervenes in Foreign Exchange Markets After Yen Slips to a 24-Year Low

While the greenback has been rising higher, the Japanese yen tapped a 24-year low and Japan decided to intervene in foreign exchange markets (forex) for the first time since 1998. Reports say the Bank of Japan conducted the first forex intervention in 24 years, after the Japanese central bank kept its benchmark bank rate suppressed for quite some time. Following the intervention, the yen rallied as the U.S. dollar took a steep dive against the Japanese yen during Thursday’s trading sessions. However, the greenback has stepped back up to the plate and the yen’s recent gains are starting to waver.

Yen’s Struggle Causes Bank of Japan to Step Into the Buy-Side of Forex Markets for the First Time in Over 2 Decades

The U.S. dollar has been a prominent force in the world of fiat currencies and just recently the Japanese yen tapped a 24-year low which pushed the Bank of Japan to intervene. Reuters detailed on Thursday that it was the first time the Japanese central bank stepped into forex markets since 1998 to revive the falling currency. It is the first buy-side intervention since 1998 as the Bank of Japan did sell yen using physical intervention methods in 2011.

Bank of Japan Intervenes in Foreign Exchange Markets After Yen Slips to 24-Year Low
JPY/USD over the last six months. Following the Bank of Japan’s forex intervention, the yen has seen a slight spike against the greenback.

Following the intervention, the Japanese yen rallied but the JPY/USD exchange rate still shows the yen is down a great deal against the greenback during the last six months. Speaking with marketwatch.com author Steve Goldstein, Michael Hewson, the chief markets analyst at CMC Markets U.K., is questioning the yen’s long-term decline.

“The big question is whether it will make a difference and change the long-term direction of the Japanese yen’s decline,” Hewson detailed on Thursday. “The 145/146 level does appear to be a level the Bank of Japan seems keen to defend at the moment given that last week’s rate check happened around similar levels.”

Chinese Yuan, EU’s Euro, and Many Other Fiat Currencies Take a Beating from the Robust Greenback — Yen’s Intervention Gains Start to Erode

The yen is not the only fiat currency struggling as the Chinese yuan has continued to depreciate against the greenback. After reaching parity with the U.S. dollar again this week, the European Union’s euro is now at $0.98 against the U.S. dollar at the time of writing.

Bank of Japan Intervenes in Foreign Exchange Markets After Yen Slips to 24-Year Low
The U.S. Dollar Index (DXY) is a USD gauge against a basket of six major fiat…

Click Here to Read the Full Original Article at Bitcoin News…