The Bank of Japan's intervention to prop up a freefalling yen has currency investors speculating about which central bank could move next in the face of a soaring dollar. Few think another G7 central bank would be bold enough to intervene directly as Japan did on Thursday.
The yen was heading on Friday to its first weekly gain in more than a month after Japanese authorities intervened in markets to support the yen for the first time since 1998, while a towering dollar kept other currencies pinned near multi-year lows.
Japanese Prime Minister Fumio Kishida said on Thursday his country will ease COVID-19 border control requirements next month, a key step in fostering a recovery in Japan's tourism sector, which is eager to take advantage of the yen's slide to a 24-year low.
* Japan buys yen to halt runaway dollar. * Long bonds tank as higher-for-longer message sinks in. * MSCI AxJ index eyes 3% drop this week. By Tom Westbrook.
The yen was heading on Friday to its first weekly gain in more than a month after Japanese authorities intervened in markets to support the yen for the first time since 1998, while a towering dollar kept other currencies pinned near multi-year lows.
The yen was on track for its first weekly gain in more than a month on Friday after Japanese authorities intervened in foreign exchange markets for the first time since 1998, while a towering dollar kept other currencies pinned near multi-year lows. The yen was up about 0.1% to 142.24 per dollar in early Asian trade, though trading was thin with Japan on a public holiday.
- A look at the day ahead in Asian markets from Lewis Krauskopf. A feverish week of central bank activity around the globe has left markets at extremes. Currency prices were rattled after Japan intervened in the foreign exchange market to buy yen for the first time since 1998. The yen surged against the dollar after the intervention. Wednesday's actions by the Fed continued to reverberate.
The Japanese yen soared across the board on Thursday after
monetary authorities intervened in the foreign exchange market to boost the battered currency for the first
time since 1998, although ...
Japanese Prime Minister Fumio Kishida said on Thursday his country will ease COVID-19 border control requirements next month, a key step in fostering a recovery in Japan's tourism sector, which is eager to take advantage of the yen's slide to a 24-year low.
Japan intervened in the foreign exchange market on Thursday to buy yen for the first time since 1998, in an attempt to shore up the battered currency after the Bank of Japan stuck with ultra-low interest rates. The move, which occurred in late Asia hours, saw the dollar plunge more than 2% to around 140.3 yen.
News, commentary and research reports are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.
PDF’s require Adobe® Reader® and will open in a new window.
Log In Required
Line of Credit Log In Required