The yen rose after Japan’s first intervention in the market since 1998

The yen rose after Japan’s first intervention in the market since 1998

The dollar It extended its decline against the yen and lost more than 2% to 141.15 yen after the intervention was confirmed. Earlier, the dollar rose more than 1% against the Japanese currency, which hit its lowest level in 24 years.

β€œThe market expected some intervention at some point, given the increased verbal interventions that we have been hearing in recent weeks,” said Stuart Cole, chief macroeconomist at Equiti Capital in London.

“But currency interventions are rarely successful and I think today’s move will only provide temporary relief (for the yen).”

TheThe move came hours after the Bank of Japan decided to keep interest rates unusually low to support economic growth, in the face of a global wave of monetary tightening from central banks struggling to rein in rising inflation.

“There is no change in our stance on keeping monetary policy loose for the time being. We will not raise interest rates for some time,” Bank of Japan Governor Haruhiko Kuroda said at a media briefing after the decision.

The BOJ’s decision came after the US Federal Reserve on Wednesday raised its interest rate for the third consecutive time by 75 basis points and signaled further hikes, underscoring its decision not to budge in its fight against inflation.

The yen has depreciated nearly 20% this year, as the Bank of Japan has kept monetary policy very easy, while many of its global peers, Like the Federal Reserve, they raised interest rates significantly to calm rising prices.

The Bank of Japan kept interest rates very low as expected in a two-day meeting that ended on Thursday, leaving unchanged its promise to maintain them at “current levels or lower”.

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Yen-buying intervention was very rare. The last time Japan intervened to prop up its currency was in 1998, when the Asian financial crisis caused a sell-off of the yen and a rapid influx of capital from the region.

Earlier, Tokyo intervened to counter the decline of the yen in 1991-92.

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