When the yen-dollar exchange rate suddenly fell to around 4 yen at one point in the morning, there were speculations that the Japanese government may have intervened in the foreign exchange market again by buying the yen and selling the dollar.
According to the Nihon Keizai Shimbun, in the foreign exchange market this morning, the yen-dollar exchange rate rose to a high of 149 yen per dollar, and then fell sharply to 145 yen.
Compared to last week’s close at 147.79 yen per dollar, it fell about 4 yen sharply after rising close to 2 yen in the morning.
Japan’s finance minister, Shunichi Suzuki, said “I will not comment” when asked by reporters if the government had intervened in the foreign exchange market.
The newspaper said that “it was noticed that the government and the Bank of Japan intervened to buy the yen following the 21st in response to the rapid weakening of the yen.”
Three days ago, on the 21st, when it went beyond 150 yen per dollar for the first time in 32 years and went to 152 yen, it is known that the Japanese government took part in a “mask intervention” as the’ to be called without revealing the fact of the intervention. .
However, as the interest rate gap between the US and Japan, a structural factor in the weakening of the yen, is not narrowing and Japan is suffering the worst trade deficit, the market is observing that the impact Japanese government intervention on the exchange the rate will be short-term and limited.