Janet Yellen noted that the willingness of the U.S. to consider another yen-purchasing intervention by Japan hinges on the particular conditions at hand.Yellen expressed that any effort by Japan to support the yen would be acceptable if it were intended to stabilize fluctuations, rather than manipulate the exchange rate's value.Japan occasionally entered the currency market in …
Janet Yellen noted that the willingness of the U.S. to consider another yen-purchasing intervention by Japan hinges on the particular conditions at hand.
Yellen expressed that any effort by Japan to support the yen would be acceptable if it were intended to stabilize fluctuations, rather than manipulate the exchange rate’s value.
Japan occasionally entered the currency market in September and October last year to bolster the yen and halt its sharp decline, which eventually reached a 32-year low of 151.94 against the dollar.
While the yen has since recovered from that low point, many market participants consider 150 to be a crucial threshold for Tokyo, and if it is breached, it could trigger another round of intervention.
Although a weaker yen benefits the profits of Japanese exporters, it has a negative impact on households and retailers by increasing the costs of importing raw materials and fuel.
Risk Disclaimer
Please note that this articles does not offer any instructions or suggestions regarding investment decisions. Therefore, it is essential that you carefully evaluate your financial situation and conduct thorough analysis, or seek advice from a qualified professional, before making any investment decisions.
