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{"id":21340,"date":"2022-10-21T14:39:27","date_gmt":"2022-10-21T09:09:27","guid":{"rendered":"https:\/\/thecorporatemagazine.com\/?p=21340"},"modified":"2022-11-01T16:16:45","modified_gmt":"2022-11-01T10:46:45","slug":"japanese-yen-gained-150-against-the-u-s-dollar-the-most-vulnerable-level-not-visited-since-august-1990","status":"publish","type":"post","link":"https:\/\/thecorporatemagazine.com\/japanese-yen-gained-150-against-the-u-s-dollar-the-most-vulnerable-level-not-visited-since-august-1990\/","title":{"rendered":"Japanese yen gained 150 against the U.S. dollar, the most vulnerable level not visited since August 1990"},"content":{"rendered":"\t\t

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Japanese yen gained 150 against the U.S. dollar, the most vulnerable level not visited since August 1990<\/h1>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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October 21, 2022: -The Japanese yen cut in the previous 150 against the U.S. dollar, a critical psychological level that was reaching levels not seen since August 1990.<\/p>
The Bank of Japan’s two-day conference is slated for the coming week. Policymakers have ruled out a rate hike to defend against more than the weakening of the currency.<\/p>
On Thursday, Japan\u2019s 10-year government debt yields breached the 0.25% ceiling that the central bank vowed to defend in the last standing at 0.252%. The yield on the 20-year bond also rises to its highest since September 2015.<\/p>
The Bank of Japan reported emergency bond-buying operations Thursday. It offered to buy 100-billion-yen ($666.98 million) Japanese government bonds with adultness of 10-20 years and another tranche worth 100 billion yen with maturities of 5-10 years.<\/p>
The central bank has often vowed to purchase an unlimited amount of bonds at a fixed rate to cap 10-year government debt yields at 0.25% as part of its stimulus efforts for the economy.<\/p>
On Thursday, Reuters spoke to Japanese Finance Minister Shunichi Suzuki said the government is taking “appropriate steps against excess volatility.”<\/p>
“Recent rapid and wrong yen declines are undesirable. We absolutely cannot tolerate excessively volatile moves driven by speculative trading,” he said.<\/p>
When asked how concerned USD\/JPY is reaching levels around 150, ANZ chief economist Richard Yetsenga added that he’s “not that worried.”<\/p>
“There are lots of emotive words about it, but what problems has it engendered?” he counted.<\/p>
Shortly after the Bank of Japan’s latest decision to carry low-interest rates to support the country’s sluggish economy in the previous month, officials approved that they would support the currency against other weakening.<\/p>
That intervention shortly caused the yen to 142 against the dollar. The spread between the highest and most low points intraday was the widest since 2016.<\/p>
In April 1990, the yen traded at about 159.8 against the dollar and last breached 160 in December 1986.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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\n\t\t\t\t Next<\/span>IBM exceeds quarterly forecasts and raises its full-year earnings prediction<\/span><\/span>