The yen rose after Japan’s first intervention in the market in nearly 25 years

The yen rose after Japan’s first intervention in the market in nearly 25 years

The dollar fell 1.2 percent to 142.33 yen in the afternoon hours. go down to 140.31 Yen after the intervention and before he touches on something new Up to 24 years old at 145.9 yenmaking the spread between the day’s highest and lowest price the widest since June 2016.

North American traders cautiously pushed the dollar higher against the yen after the Japanese authorities’ moves, but for now, few are challenging intervention. “The market is tense”, said Stephen Englander, Head of FX North America at Standard Chartered in New York.

The euro, Australian dollar and British pound also fell against the Japanese currency.

Confirmation of the intervention by the Japanese authorities came hours later The Bank of Japan (BoJ) decided to keep interest rates low to support the country’s fragile economic recovery.

Instead, central banks around the world, most notably the US Federal Reserve, are raising interest rates aggressively and the divergence in policy has weighed on the yen.

Analysts noted that Japan could not continue to support the currency on a consistent basis. β€œIn the next three to six months, or even longer, as long as these monetary policy differences continue to exist and these differences persist, you will continue to see a weaker yen,” said Brendan McKenna of Wells Fargo Securities.

On a busy market day, the British pound avoided 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.

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The euro was little changed at $0.9832, recovering from a 20-year low hit earlier in the global session. The dollar index fell 0.1 percent to 111.31 units, from a two-decade high hit earlier in the day at 111.81.

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