Yen Strengthens After Hitting 160 To The Dollar

On Monday, the yen drifted past 160 to the dollar before sharply strengthening to around 154 on rumours of intervention by Japan.

Monday was the first time the yen has been at 160 to the dollar since April of 1990 and upon falling to 171 to the Euro was at its lowest level to the European currency since it was introduced in 1999.

The yen then strengthened upon rumours that the Japanese government intervened, which neither confirmed nor denied that it took action. But data released by the Bank of Japan on Tuesday suggested that the government purchased yen on Monday to halt the depreciation, resulting in a liquidity reduction of JPY7.56 trillion (US$48.2 billion).

On 17 March of this year the Bank of Japan raised interest rates for the first time in 17 years in an effort to strengthen the yen, although that appears to have had a limited effect as the yen has depreciated further since that time.

Many investors speculate that the Bank of Japan will soon raise interest rates again, which remain much lower in Japan than in other peer countries.

As of this article publishing on the morning of 1 May, the yen has depreciated since its Monday strengthening, standing at more than 157 to the dollar.

You might also be interested in…

• Japan Raises Interest Rates For First Time Since 2007
• 2023 Was A Great Year For Japanese Stocks
• Niseko Real Estate Interest & Transactions Up Over Winter