The Japanese yen fell against the euro to its lowest level since 2008. The weakening is facilitated by the country’s super-soft monetary policy. Japan is the only one in the world that maintains a negative rate notes Bloomberg.
During trading on the international market, the euro rose by 0.96% at the moment, to 159.21 yen. Jefferies expects the rate to rise to 160 yen.
The yen weakened against the dollar, but not as much as against the euro. The fact is that the data on a stronger-than-expected slowdown in inflation in the US increased hopes that the Fed will not raise the rate at the September meeting. The end of the cycle of tightening monetary policy is a factor in favor of a depreciation of the dollar on the world market.
According to the results of July, the consumer price index (CPI) in the USA made up 3.2% year on year vs. forecast at 3.3%. A month earlier, CPI was at 3%.
On a monthly basis, US inflation rose by 0.2%, in line with expectations.
At 15:30 Moscow time, when the inflation report was published, the US dollar / yen fell at a minimum by 0.3% to 143.3 yen. However, the rate soon began to grow again – as of 18:24 Moscow time, it added 0.53%, to 144.46 yen.
In September 2022, as the exchange rate approached 146 yen to the dollar, the Bank of Japan for the first time since 1998 came out into the foreign exchange market. According to the Japanese Ministry of Finance, between August 30 and September 28, the regulator spent 2.8 trillion yen (about $19.7 billion at the then exchange rate) for these purposes. Reuters notesthat this amount was probably spent in one day – September 22. Then the yen sharply strengthened against the dollar, but by the following days the American currency began to rise in price again.
In October, when the rate rose above 150 yen per dollar, the Bank of Japan again entered the foreign exchange market. Then, in two days, it was already spent to support the yen. 6.35 trillion yen ($42.8 billion).
2023-08-10 16:08:45
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