2024-04-24 20:28:27
Around 8:05 pm GMT, the Japanese currency fell 0.32% against the American currency, to 155.32 yen per dollar. Earlier, it fell to 155.37 yen, the first time since June 1990.
“The pressure is mounting” on Japan, forcing it to “come to the rescue of its currency,” observed ForexLive analyst Adam Button. “But unfortunately, the dollar is fundamentally strong and I don’t see what the Japanese Ministry of Finance can do about it,” he said.
The financial markets have been buzzing, in recent weeks, with rumors of a possible intervention by the Japanese authorities in the foreign exchange market, as they did three times in 2022, successfully, once in September and twice in October.
“But other than palaver, we haven’t heard anything,” notes Matthew Weller, an analyst at Forex.com.
The “buck”, the nickname of the dollar, is still won by “the basis of high interest rates and more vigorous economic growth” in the United States, recalls this analyst.
“Having crossed 155 (¥ to the dollar) now, (American growth for the first quarter published on Thursday) and (the price index) PCE (estimated Friday) would be enough to get us closer for 160. “, warned Adam Button.
The situation of the yen reflects the distress of many currencies as they face the power of the “green period”, another nickname for the dollar, as some countries go on the offensive.
Bank Indonesia, Indonesia’s central bank, announced on Wednesday, to everyone’s surprise, an increase in its main rate of a quarter point, to 6.25%, in order to stabilize its currency, the Indonesian rupiah.
The latter recently fell to its lowest price in four years against the dollar.
Just as in Japan, Indonesia’s monetary authorities fear that the depreciation of their currency will fuel inflation through imports, both countries being large consumers of natural resources bought abroad.
In addition to raising its key rate, Indonesia’s central bank announced a series of measures, including its intention to intervene directly in the foreign exchange market.
Also dependent on the natural resources of other countries, Vietnam began to act on the same ground a few days ago to protect the dong, its currency, which fell to the lowest level in its history against the dollar on Wednesday.
Wednesday price Tuesday 8:05 pm GMT 9:00 pm GMT EUR/USD 1.0699 1.0701 EUR/JPY 166.17 165.69 EUR/CHF 0.9786 0.9759 EUR/GBP 0.8585 USD 0.9148 0.9119 GBP/USD 1.2461 1. 2449
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