The Super Dollar has risen, but has risen moderately after Japan’s first currency intervention since 1998

The Super Dollar has risen, but has risen moderately after Japan’s first currency intervention since 1998

North American traders cautiously pushed the dollar higher against the yen after the Japanese authorities’ moves, but for now, few are challenging intervention.

On a very busy day for the markets, Sterling pound Avoid the small gains made after the Bank of England raised interest rates by 50 basis points. The British currency fell 0.2% to $1.1251, close to a 37-year low hit earlier at $1.1213.

The euro It was barely changed by $0.98, recovering from a new 20-year low set earlier in the global session.

‘The market is tense’said Stephen Englander, Head of FX North America at Standard Chartered in New York.

Euro, Australian dollar and British pound They also fell against the Japanese currency.

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.”

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