Home NewsForex Market News It is rumored that Japan will intervene in the foreign exchange market again, the yen has risen in a single day for more than 2 months, the largest DXY weekly line has stopped five consecutive rises | Anue Juheng

It is rumored that Japan will intervene in the foreign exchange market again, the yen has risen in a single day for more than 2 months, the largest DXY weekly line has stopped five consecutive rises | Anue Juheng

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It is rumored that Japan will intervene in the foreign exchange market again, the yen has risen in a single day for more than 2 months, the largest DXY weekly line has stopped five consecutive rises | Anue Juheng


After the market came out that the Japanese authorities once again intervened in the foreign exchange market, the yen pulled sharply in the short-term on Friday (21st), and the exchange rate against the US dollar recorded its largest one-day rise in more than two months, and closed in the red for the first time in nine weeks. The U.S. dollar index fell about 1.3 percent for the week, halting a five-day winning streak.

The ICE U.S. Dollar Index (DXY), which tracks the greenback against six major currencies, was down 0.87% at 111.89 in late New York trade. It was down about 1.3% for the week.

The Wall Street Journal (WSJ) reported that Federal Reserve officials are moving towards a target of a 3-yard rate hike in November, while some policymakers have begun to signal that they want to slow the pace of rate hikes soon, possibly in December. open discussion.

High inflation has left the global economic outlook in limbo, and the U.S. dollar has climbed strongly this year on the back of a hawkish Fed and strong demand for safe-haven assets. Even as the dollar retreated after the report, it remains near two-year highs.

“It’s hard for us to fight the fact that the Fed has to continue to be aggressive, which means the dollar is still going to end up going higher,” said Bipan Rai, head of FX strategy for North America at CIBC Capital Markets.

The yen rose to around 146.2 yen against the US dollar at one point, and pared some of the gains in late trading, rising 1.73% to 147.49 yen, the largest one-day gain since August.

Karl Schamotta, market strategist at Corpay, sees this as the result of another intervention by the authorities, with heavy dollar selling and an almost vertical rise in the yen.

The yen rose 0.7% against the dollar this week, snapping a nine-week losing streak, driven by strong gains on Friday.

The Nikkei reported earlier, citing sources, that the Japanese government and the central bank intervened in the foreign exchange market earlier on Saturday (22nd) local time in order to prevent the yen from depreciating, driving the yen to rebound sharply against the dollar. During New York trading, the yen surged by around 7 yen against the dollar in an hour, hitting the 146 mark.

In response to the above news, Japanese Deputy Finance Minister Kanda Masaru said he would not comment on this.

“It’s clear that the Japanese Ministry of Finance stepped in and sold the dollar against the yen. They were trying to defend ultra-easy monetary policy,” said Mazen Issa, senior currency strategist at TD Securities.

A weaker dollar helped lift the pound, which rose 0.5% to $1.1291, up nearly 1.1% for the week.

The outlook for the pound remains uncertain even as Britain is due to choose a successor within two months after Conservative leader Liz Truss resigns as prime minister.

The exchange rates of the Australian dollar and the euro against the US dollar both rebounded sharply. The Australian dollar rose 1.6% to US$0.6381, climbing to a more than one-week high and rising nearly 3% for the week; the euro rose 0.78% to US$0.9861, up about 1.5% this week.

As of Saturday (22nd) Taiwan time about 6:00 Price:

The dollar index was at 111.8720. -0.8581% The euro against the US dollar (EUR/USD) was quoted at $0.9861 per euro. +0.7870% GBP/USD (GBP/USD) was quoted at 1.1296 sterling. +0.5429% The Australian dollar against the US dollar (AUD/USD) was quoted at 1 AUD=0.6380. +1.5924% The US dollar against the Canadian dollar (USD/CAD) was quoted at 1.3643 Canadian dollars per US dollar. -0.8863% The U.S. dollar against the Japanese yen (USD/JPY) was quoted at 147.63 yen per dollar. -1.6325%

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