Sep 15, 5:00 AM +05:00
VOT Research Desk
Technical Analytics
On Wednesday, the Japanese Yen recovered 1.08% against the US Dollar, which is an impressive result given the JPY’s ongoing slide since 2021. What prompted this action? The possibility of market intervention was reopened for the first time since 1998 when reports that the Bank of Japan performed a rate check made their way over the wires. The traders were alarmed
Before this occurrence, a number of government and monetary policy officials in Japan had been verbally attacking the currency. There was no physical activity. The BoJ continues to be in a very different position from its major rivals at the end of the day.
The central bank keeps up its ultra-loose monetary policy, which includes negative interest rates, ongoing quantitative easing, and yield curve control.
The Bank of Japan hasn’t always had success with intervention, historically speaking. The central bank intervened to sell the Yen at least 18 times (with assistance from the Fed and ECB once) between about January 1999 and April 2000 to help halt its gain.
