Despite the Japanese government’s repeated warnings that it would intervene to boost the yen and halt its slide, the yen plummeted against the dollar.
The yen dropped by more than 1% on Friday, falling to 151.95 yen per dollar, the lowest level in 32 years, according to the Bloomberg News Agency, while the strong dollar was helped by the high return on American Treasuries.
Bloomberg added that the pressure on the Japanese authorities increased after the price of the yen fell to more than 150 yen per dollar.
The market anticipates the movement of Japanese officials and their intervention to support the local currency at any time, according to Brad Pecit, head of the exchange markets sector at Jeffrez Financial Consulting Corporation, and “there will be many who will benefit from the decline if it happens.”
This occurs as Sonchi Suzuki, Japan’s minister of finance, confirmed today, Friday, that his country is prepared to act. Sonchi Suzuki stated that he is watching the markets with a severe sense of the seriousness of the situation and that he finds the sudden and unacceptable decline of the yen to be unacceptable.
It is noteworthy that the dollar rises against most of the ten main currencies in the world at a time when the US Treasury bonds are declining and the return on it rises, as the return on standard ten bonds has reached its highest levels since 2007.
The American Federal Reserve (Central Bank), which sets monetary policy, has stated that it intends to keep raising the key interest rates in order to keep inflation in check across a range of global markets.
For the first time since 2011, the yield on the typical German ten-year bond jumped to more than 2.5%.
Despite predictions of Japanese involvement to stabilize the domestic currency, the yen keeps falling against the dollar.
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