{"id":13984,"date":"2022-09-22T18:43:12","date_gmt":"2022-09-22T18:43:12","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/bank-of-japan-intervenes-in-foreign-exchange-markets-after-yen-slips-to-24-year-low-economics-bitcoin-news\/"},"modified":"2022-09-22T18:43:12","modified_gmt":"2022-09-22T18:43:12","slug":"bank-of-japan-intervenes-in-foreign-exchange-markets-after-yen-slips-to-24-year-low-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/bank-of-japan-intervenes-in-foreign-exchange-markets-after-yen-slips-to-24-year-low-economics-bitcoin-news\/","title":{"rendered":"Bank of Japan Intervenes in Foreign Exchange Markets After Yen Slips to 24-Year Low \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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While the greenback has been rising higher, the Japanese yen tapped a 24-year low and Japan decided to intervene in foreign exchange markets (forex) for the first time since 1998. Reports say the Bank of Japan conducted the first forex intervention in 24 years, after the Japanese central bank kept its benchmark bank rate suppressed for quite some time. Following the intervention, the yen rallied as the U.S. dollar took a steep dive against the Japanese yen during Thursday\u2019s trading sessions. However, the greenback has stepped back up to the plate and the yen\u2019s recent gains are starting to waver. <\/strong><\/p>\n

Yen\u2019s Struggle Causes Bank of Japan to Step Into the Buy-Side of Forex Markets for the First Time in Over 2 Decades<\/h2>\n

The U.S. dollar has been a prominent force in the world of fiat currencies and just recently the Japanese yen tapped a 24-year low<\/a> which pushed the Bank of Japan to intervene. Reuters detailed on Thursday that it was the first time the Japanese central bank stepped into forex markets since 1998 to revive the falling currency. It is the first buy-side intervention since 1998 as the Bank of Japan did sell yen using physical intervention methods in 2011.<\/p>\n

\"Bank
JPY\/USD over the last six months. Following the Bank of Japan\u2019s forex intervention, the yen has seen a slight spike against the greenback.<\/figcaption><\/figure>\n

Following the intervention, the Japanese yen rallied but the <\/span>JPY\/USD exchange rate<\/span><\/a> still shows the yen is down a great deal against the greenback during the last six months. Speaking with marketwatch.com author Steve Goldstein, Michael Hewson, the chief markets analyst at CMC Markets U.K., is questioning the yen\u2019s long-term decline.<\/span><\/p>\n

\u201cThe big question is whether it will make a difference and change the long-term direction of the Japanese yen\u2019s decline,\u201d Hewson detailed<\/a> on Thursday. \u201cThe 145\/146 level does appear to be a level the Bank of Japan seems keen to defend at the moment given that last week\u2019s rate check happened around similar levels.\u201d<\/span><\/p>\n

Chinese Yuan, EU\u2019s Euro, and Many Other Fiat Currencies Take a Beating from the Robust Greenback \u2014 Yen\u2019s Intervention Gains Start to Erode<\/h2>\n

The yen is not the only fiat currency struggling as the Chinese yuan has continued<\/a> to depreciate against the greenback. After reaching parity with the U.S. dollar again this week, the European Union\u2019s euro is now at $0.98 against the U.S. dollar<\/a> at the time of writing.<\/p>\n

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The U.S. Dollar Index (DXY) is a USD gauge against a basket of six major fiat currencies.<\/figcaption><\/figure>\n

Masato Kanda, Japan\u2019s vice finance minister for international affairs, explained that the yen\u2019s recent 24-year drop made it so officials \u201chave taken decisive action in the exchange market.\u201d At the time of writing, the U.S. dollar index chart (DXY)<\/a> has skyrocketed to 111.448 and the yen\u2019s gains during the morning trading sessions (ET) are slowly being erased. In addition to a large handful of fiat currencies, crypto assets<\/a>, precious metals<\/a>, and equities are taking a beating from the U.S. dollar as well on Thursday afternoon (ET).<\/p>\n

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1998<\/a>, 24-year low<\/a>, Bank of Japan<\/a>, benchmark interest rate<\/a>, BOJ<\/a>, Buy-Side<\/a>, Buy-Side forex markets<\/a>, Dollar<\/a>, Dollars<\/a>, falling currency<\/a>, fiat currency<\/a>, Foreign Exchange Markets<\/a>, forex<\/a>, Greenback<\/a>, intervention<\/a>, Japanese yen<\/a>, low rates<\/a>, Michael Hewson<\/a>, Steve Goldstein<\/a>, U.S. dollar<\/a>, US dollars<\/a>, USD<\/a><\/div>\n<\/div>\n

What do you think about the Japanese yen sliding to a 24-year low and the Bank of Japan stepping in to fix the situation via forex markets? Let us know what you think about this subject in the comments section below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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