• By The Financial District

Japan Intervenes in Currency Market; Yen Rises vs U.S. Dollar

Japan on Thursday stepped into the currency market amid the yen's abrupt fall, a senior Finance Ministry official said, in its first such intervention since 1998, Mainichi Japan reported.


Photo Insert: The yen-buying, dollar-selling operation was conducted after Japanese authorities said all options were on the table in their response to the yen's rapid depreciation.



"We took a decisive step" as speculative moves have been seen in the currency market, Masato Kanda, Japan's top currency diplomat, told reporters, adding, "We will continue to watch foreign exchange moves with a high sense of urgency."


Earlier in the day, Kanda said Japan could intervene in the foreign exchange market "anytime" to prevent the yen from plunging further, hours after the currency hit a new 24-year low against the US dollar.



Japan is believed to have sold dollar-denominated assets it holds, such as US Treasuries, to buy the yen, investors said.


On Thursday, the Bank of Japan maintained its ultralow rate policy as widely expected to prop up the pandemic-hit economy, sticking to a dovish stance despite the yen's sharp decline in a global policy-tightening wave to tackle inflation.


All the news: Business man in suit and tie smiling and reading a newspaper near the financial district.

The US Federal Reserve on Wednesday raised its benchmark policy rate by 0.75 percentage points to combat surging inflation, consolidating the view among market participants that the interest rate gap between the United States and Japan will widen further.


The dollar rose above the 145-yen line in Tokyo trading Thursday, its highest level since 1998, before Kanda made the comments. The yen-buying, dollar-selling operation was conducted after Japanese authorities said all options were on the table in their response to the yen's rapid depreciation.



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