JPY in intervention territory
The Japanese yen is back to government intervention territory. After a week of constant declines, the USD/JPY hit ¥145.21 per dollar in the early hours of Monday - a level not seen since last November.
(Video Transcription)
Will government stop yen's slide?
With Angela Barnes, IG financial analyst
The Japanese yen is a back to government intervention territory. If we look at the US dollar/Japanese yen chart, after a week of constant declines, the USD / Japanese Yen hit 145.21 per dollar in the early hours of Monday, a level not seen since last November.
Well, it's at that level that the Japanese government decided to intervene on the currency market last September.
Ultra-loose montary policy
It did so again, a month later when the dollar/yen rose above 151, and all of this comes as the Bank of Japan has stuck to its ultra loose monetary policy as global central banks have hiked interest rates, making returns in other countries look more attractive and weighing heavily on the yen.
The yen is down about 10% against the dollar so far this year.
It is at this level that the Japanese government decided to intervene on the currency market last September. It did so again a month later when the USD/JPY rose above ¥151.
It comes as the Bank of Japan (BoJ) has stuck to its ultra-loose monetary policy as global central banks have hiked interest rates, making returns in other countries look more attractive and weighing heavily on the yen. The yen is down about 10% against the dollar so far this year. IGTV’s Angela Barnes has more.
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