Currency Buzz: Yen Supported As Japan Intervenes

22 Sep 2022 , 05:00 PM

The Japanese yen bounced back by more than a percent after the Japanese government and the Bank of Japan reportedly intervened to buy the yen and sell dollars for the first time in about 24 years on Thursday. The yen weakened sharply early in the day after the Japanese central bank stuck to its ultraloose monetary policy, even as the U.S. Federal Reserve raised interest rates by 75 basis points for a third consecutive meeting, and vowed even more hikes as it battles inflation reaching 40-year highs. The Bank of Japan maintained its key short-term interest rate at -0.1% with governor Kuroda saying the central bank wont be raising interest rates for some time. The yen fell to a new 24 year low of 145.90 against the US dollar as the US currency soared to fresh two decade highs post Fed rate hike. Yen is currently up nearly 1% at 142.76 against the dollar. Meanwhile, the dollar index that measures the greenback against a basket of currencies is up 0.50% to 110.88, off its recent peak of 111.47, its highest level since June 2002, while 10-year U.S. Treasury yields surged to a 11-year high. Powered by Commodity Insights