During Tuesday’s trading today, 10-20-2022, the price of the Japanese yen decreased as the US dollar dropped to its lowest level since 1990 as traders braced themselves for another potential intervention from Tokyo to support its currency.
The price of the Australian dollar increased after the minutes of the last meeting of the Australian Reserve Bank revealed that the decision to slow the pace of interest rates to a quarter of a point instead of another increase by half a point was “balanced with accuracy”.
Following a report on consumer prices that showed a higher rise than anticipated, which increased expectations of further tightening policies, the New Zealand dollar also increased.
The dollar registered 148,855 yen late in the evening session after recording 149. 10, breaking through the psychological barrier of 150 for the first time since August 1990.
The dollar index, which gauges how the US dollar performs against six major currencies such as the yen, euro, and pound sterling, fell at the same time, approaching its lowest point in a week and a half as European currencies rose as a result of a sharp turn caused by the British government’s withdrawal from its tax reduction plan.
The tension among traders following the first Japan Bank intervention in buying the yen since 1998 on September 22 has resulted in a 3% strengthening of the dollar against the yen since the fifth of October, when it broke a sustainable barrier of 145 after spending roughly two weeks hovering near it.
The pound fell to $ 1. 1349 after its rise 1. 6 percent, and touched $ 1. 144 for the first time since the fifth of October.
The cancellation of Jeremy Hunt, who was appointed by British Prime Minister Liz Tros, and a significant portion of the “miniature budget” of 45 billion pounds last Friday caused market turmoil, drove the pound to record lows, and necessitated a Bank of England intervention to prevent the collapse of the bond market.
The euro settled at 0. 9838 dollars, after yesterday touched the highest level since the sixth of October at 0. 9853 dollars, and the Australian dollar rose 0. 14 % to $ 0. 630..
Japanese yen at its lowest level against the dollar since 1990
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