The yen fell to nearly 145 yen to the dollar today!
Immediately after the U.S. inflation figures suggested that the Federal Reserve might raise interest rates faster than previously expected, widening the interest-rate gap with Japan.
Tweet on Yen and dollar amid rising inflation
Yen, reaches a record low against the Dollar!
The yen fell to nearly 145 yen to the $ on Tuesday, after U.S. inflation figures suggested that the Federal Reserve might raise interest rates faster than previously expected, widening the interest-rate gap with Japan. pic.twitter.com/zWoV0zIrVd
— The_Journalbiz (@the_journalbiz) September 14, 2022
The first rule of currency intervention, according to Japan’s finance minister, is that you don’t talk about currency intervention.
Finance Minister Shunichi Suzuki, speaking to reporters Wednesday at his ministry after the Japanese currency touched another 24-year low against the dollar, reiterated that Tokyo wasn’t ruling out any steps to stop the yen’s fall.
Asked whether those steps included government intervention to sell dollars and buy yen, he said that they did.
Asked further whether Japan has already intervened, he said: “It isn’t something you give a warning about. And you don’t normally say whether or not you’ve done it. When you do it, however, you do it instantly, as quick as a flash.”
The yen regained some ground and was trading at around 143 to the dollar Wednesday after the Nikkei newspaper reported that the Bank of Japan had called up banks to check on currency rates, a step traditionally seen as a prelude to intervention by the government. Mr. Suzuki declined to comment about the reported rate check