Yen this morning fluctuated around 149 yen per US dollar. Yesterday session, the price at one point increased nearly 2% to 147 yen per USD, after falling to 150.1 - the lowest since October 2022.
Yesterday's sharp rise in the yen sparked speculation that Japanese authorities may have intervened to support the local currency. "If there is intervention, this is completely consistent with recent warnings from senior officials. It also coincides with past moves," said James Malcolm - Director of foreign exchange strategy at UBS. .
These moves are unlikely to reverse the trend in the foreign exchange market immediately. However, it can help investors feel somewhat secure, while also giving officials more time to find a solution.
Yen has recently continuously lost value compared to the US dollar. Graph: Reuters
Today, Japanese Finance Minister Shunichi Suzuki told the press that they will take necessary measures to prevent sharp fluctuations in the yen, and emphasized that they will "not rule out any possibility". He refused to confirm intervention to raise the yen price on October 3.
"Exchange rates should move according to the market, reflecting fundamental factors. Strong fluctuations are something no one wants. The government is closely monitoring this issue," he said.
Another top currency official in Japan - Deputy Finance Minister Masato Kanda also said today that officials look at many factors to decide whether the yen is fluctuating too much or not.
"If currencies increase or decrease too much in a day or a week, that is big fluctuations. But if calculated over a certain period of time, small fluctuations combine to form large fluctuations, that is also too volatile. level," Kanda said.
Last year, for the first time since 1998, Japan intervened to support the yen. The reason is that this currency is at its lowest level in 32 years compared to USD, at 151.9 yen per US dollar.
Japanese officials are under pressure as the yen has continuously weakened in recent times. The main reason is the contrasting monetary policies between Japan and other major economies such as the US and Europe.
While the US and Europe sharply raised interest rates to deal with inflation, Japan still maintained negative interest rates. This causes investors to sell this currency to switch to other channels for higher profits.
Ha Thu (according to Reuters)
