Today, the yen came under pressure against most of the other major currencies, despite the assurances of the Japanese authorities that they may intervene to support it.
The Japanese currency was affected by market expectations that the Bank of Japan would keep interest rates very low, while other central banks tightened their monetary policy to curb inflation, which led to speculation about whether and when the central bank would intervene to stop the yen’s decline.
In this context, Japanese Deputy Finance Minister Masato Kanda said, in remarks, “We will monitor the situation with high sensitivity… and we will respond appropriately in the event of excessive movements in the foreign exchange market.”
In addition, Carol Kong, currency analyst at the Commonwealth Bank of Australia, expected the yen to continue declining against the dollar, which means that the possibility of the Japanese Ministry of Finance’s intervention in the foreign exchange market increased, and the Japanese Ministry of Finance issued instructions to the Bank of Japan.
The yen fell to 144.2 against the dollar, in today’s trading, reaching its lowest level in seven months, and it also fell to its lowest level in 15 years at 157.94 against the euro.
