Posted Oct 3, 2022, 3:00 PMUpdated Oct 3, 2022, 3:03 PM
Japan bought 2.8 trillion yen ($19.6 billion) in September to support its currency, the finance ministry has revealed. But this intervention only offered a week of respite to the Japanese currency. The dollar has already climbed back above 145 yen (145.3 yen per dollar), a threshold that triggered the intervention of the Bank of Japan (BoJ). It was the first time since 1998 that she was involved in the purchase.
This year marks a turning point for the Japanese currency. It temporarily lost its status as a safe haven currency, which it shared with the Swiss franc. During periods of market turbulence such as the present, it tended to increase. In 2022, it plunges by 20.5%. The BoJ’s accommodating and solitary monetary policy in a world that is massively raising its interest rates precipitated the yen’s fall.
