US Dollar Tumbles Against The Yen, And Many Are Suspecting An Intervention From BOJ
The yen continues to see some of its darkest days as the forex market continues its volatile streak amid rising inflationary costs. Until inflation and rising interest rates stop anytime soon, then it is very likely that the market will continue to struggle.
One of the biggest currencies to take a hit following this volatile rise is the yen, which has continuously risen to dangerous highs. In fact, over the last month, the price of ye managed to reach a 32-year high, which made many investors seriously concerned.
Japan has also made it clear that it does not want to rely on interventions to properly maintain its currency. Instead, it wants to start working on a number of domestic projects to keep the value of its currency afloat. However, the government has not made any major strides to improve domestic production or just about anything else.
Therefore, they have had to rely on interventions to boost their economy, something that they have not had to do for almost two decades. However, many have doubts about the interventions that Japan is making.
One of the most impressive things that Japan has been able to do in recent years is maintained its currency. In fact, it has been able to maintain its currency to the point that it has remained almost unchanged for most years.
However, with the recent rise in inflation, the yen has taken a very serious hit, and it continues to rise against the US dollar without any end in sight. Therefore, during these times, the BOJ has had to intervene.
But as most have noticed, the dollar has taken a recent hit against the yen, and many are believing that a series of stealth interventions is what is keeping the yen afloat.
The bank of japan has recently sold an unspecified amount of dollars and bought an unspecified amount of yen on Saturday. Therefore, the market was seeing one of its worse times, as the yen continues to drop.
It is important to understand that the interventions did manage to happen, but the ministry of finance has yet to confirm the incident. In fact, except for two major interventions, the chief minister has yet to make any statements about the interventions. Therefore, many believe that this is a result of stealth interventions.
Closely Watching the Impact that Currency Moves can have
The chief minister and the governor of the Bank of Japan have made it clear that they will be looking at the impact of these types of cryptocurrencies carefully. They will also be looking into different ways that they can support the yen without having to rely on constant interventions.