Japanese Yen Jumped After Government Expressed Intervention Warning

Share Us

335
Japanese Yen Jumped After Government Expressed Intervention Warning
13 Jun 2022
min read

News Synopsis

The Japanese yen rose on Friday after the government and the central bank expressed concern about the yen's recent lows for the first time in 20 years in a rare joint statement.

After meeting with the Bank of Japan's counterparts, Masato Kanda, the country's highest currency diplomat, told reporters that Tokyo would take appropriate steps as necessary.

The Japanese yen took a beating as traders bet the BOJ will maintain an extremely accommodative policy as the Federal Reserve and other central banks ramp up tightening to curb soaring inflation.

The yen rose to 133.37 yen against the dollar, up 0.7% in the session, before settling at 133.67. On Thursday, it fell to a low of 134.56, levels last seen in early 2002. In another development on Friday, the dollar was little moved as traders braced for US inflation data that will guide the Federal Reserve's tightening path.

Core US consumer price growth is expected to slow. That could give the Fed some time to raise rates less aggressively later in the year as it tries to rein in inflation without the risk of recession in the economy.

TWN In-Focus