The Japanese yen declined against its major counterparts today after the Japanese Vice Finance Minister said that the currency rate volatility is hurting the countrys economy.
Kazuyuki Sugimoto told the reports in Tokyo today that stimulating the economy is now the governments top priority and that the excessive yens volatility on Forex is undesirable. The yen fell against the dollar, the euro and the pound, while the U.S. dollar continued its gain against the euro. The yens decline happened despite the decline in the domestic stock market, which is a rare coincidence.
Analysts believe that the currency intervention may follow after such statements as the todays one. Japanese government can buy dollars with the yen to hold down the currencys appreciation. Even if the government isnt really planning an intervention, many traders will react on the todays interview as if its going to and the yen will remain under pressure.
USD/JPY rose from 95.03 to 95.75 as of 12:16 GMT today. EUR/JPY went up from 128.14 to 128.98, while GBP/JPY advanced from 144.17 to 146.01.
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