The super dollar does not stop the escalation after the Federal Reserve and its impact on emerging market concerns

The super dollar does not stop the escalation after the Federal Reserve and its impact on emerging market concerns

The Yen strengthening Strongly on Thursday, after the Japanese authorities intervened in the foreign exchange market for the first time Since 1998 to support the collapsed currency. The dollar fell as low as 140.31 yen and later fell 1.2% to 142.37 yen in very volatile trading. The euro, Australian dollar and British pound also fell against the Japanese currency.

This was the first Japanese intervention in the foreign exchange market to support the yen since 1998 and came on the heels of the central bank’s decision to keep interest rates very low, which sent the currency down. “What Japan is doing is sending a signal that raising the dollar/yen is not a free ride,” he said. Jane FoleyHead of foreign exchange strategy at Rabobank in an interview with Reuters.

However, he added, “Given that the Bank of Japan has just implemented a very loose monetary policy, after the Federal Reserve took a more aggressive stance, I think fundamentals will push the USD/JPY higher.”

The double the euro against the US currency, hitting a 20-year low at $0.9807, and Sterling pound It fell to a new 37-year low of $1.1213, although it recovered to $1.1250 after the Bank of England announced a 50 basis point interest rate hike.

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