Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Trump: We want to feed the people in Gaza, we do not want them to starve.
US President Donald Trump: We will impose sanctions on Russia if it does not end the war on Ukraine.
Israeli media: Polls show that 52% oppose Prime Minister Benjamin Netanyahu while only 29% support him.
Israeli media: 32% of Americans still support "Israel's" war on Hamas, while 60% oppose it.
Israeli media: Core US support for "Israel" hits its lowest, while support for Palestine reaches its highest levels.
Al Mayadeen's correspondent reports martyrs, injuries in Israeli bombardment of home in Heker al-Jame area in Deir al-Balah, central Gaza.
Al-Quds Governorate: Today, the spatial division of Al-Aqsa Mosque began in a public and dangerous manner, and we warn of a religious war in the region
The Ministry of Health in Gaza: This brings the total number of victims of famine and malnutrition to 175, including 93 children
The Ministry of Health in Gaza: Gaza's hospitals recorded six deaths due to starvation and malnutrition in the past 24 hours, all of them adults
Informed sources to Al Mayadeen: A new chapter in relations between Iran and the International Atomic Energy Agency will begin within the framework of the new law passed by Parliament

Japan makes first currency intervention as yen value deteriorates

  • By Al Mayadeen English
  • Source: Agencies
  • 22 Sep 2022 18:34
  • 1 Shares
4 Min Read

Tokyo is moving against the sharp decline of its currency in light of the US rate hikes, pumping USD into the market and absorbing the yen.

  • x
  • The Bank of Japan headquarters in Tokyo, Japan (CFP)
    The Bank of Japan headquarters in Tokyo, Japan (CFP)

The Japanese central bank (Nichigin) conducted its first currency intervention to try and pull the staggering yen from the hot water it has been plunged into for months, selling the US dollar and buying the yen from the Japanese market, Kyodo news agency reported on Thursday.

The Bank of Japan's intervention marks its first since June 1998, as the yen's value continues dwindling, reaching its lowest rate since 1998, the Japanese media outlet added.

Kyodo said the size of the intervention was unknown, but it is believed that the Japanese government had to sell some of the US Treasury bonds it had in its central bank.

Nichigin left its short-term interest rates at -0.1% following a two-day policy meeting. Immediately after the decision to keep the interest rates unchanged, the yen immediately went into freefall, hitting its lower price in 24 years at 145.24 yen per USD on the Tokyo Stock Exchange, beating the former record of 135.19 yen per dollar.

The Japanese yen sold at the lowest price against the US dollar on June 13 for the first time since 1998, as the United States is battling soaring consumer prices, one of whose repercussions have been a widening monetary policy gap between Japan and the US.

Related News

Iraq’s PMF law seen as test of sovereignty amid US objections

Notorious Palantir lands record $10bln contract with the US Army

The yen has been in freefall for months, especially in light of the Fed aggressively hiking interest rates to try and mitigate the soaring inflation. The current financial situation is expected to maintain its momentum through the coming period as the US grapples with several issues, including the sanctions on Russia that have been causing supply cuts, surging gas prices, and rising food prices.

The Bank of Japan said it would adhere to its long-standing monetary easing program, which it hopes would lead to stable growth, a step that goes against what the Fed is doing at home.

The contradicting policies have given the USD a lot more ground against the Japanese currency, with the former buying 135.19 yen. This beats the former record of 126 yen on the dollar, which was the Japanese currency's lowest since 2002. This high rate had not been seen since the 1998 Asian currency crisis.

While other countries like the US and UK are currently facing arguably more serious cost of living problems, soaring commodity prices, fuelled by the war in Ukraine, pushed Japan’s consumer inflation above the Bank of Japan’s 2% target for the first time in seven years.

The yen took its latest hit after the US Federal Reserve's Federal Open Market Committee (FOMC) announced Wednesday that it was raising the federal funds rate by 75 base points to between 3% and 3.25%, which would be the third increase in a row after the central bank decided in April to increase rates to attempt and keep inflation under control.

On Wednesday, Fed chair Jerome Powell said it would sometime become appropriate to slow the rate of interest rate increases; the median forecast showed the bank expects to increase interest rates to at least 4.4% by the end of 2022. However, it could continue to rise, hitting 5% in 2023.

Despite the fact that higher interest rates are supposed to limit intra-bank loans and thus create new money, the Economic Policy Institute found in an April study that corporate profits accounted in the last two years for 54% of inflation in the US. This means that the problem is price speculation, not overeager lenders.

  • United States
  • Japan
  • Federal reserve
  • US dollar
  • Tokyo

Most Read

A rescued crew member from the ETERNITY C vessel in a video released by the Yemeni Armed Forces on July 28, 2025 (Yemeni Military Media)

Yemen Navy reveals fate of targeted Eternity C ship crew

  • Politics
  • 28 Jul 2025
An Israeli tank explodes following an ambush by al-Qassam Brigades in Gaza, Occupied Palestine, undated (Al-Qassam Military Media)

Al-Qassam strikes Israeli vehicles in Gaza, inflicts casualties

  • Politics
  • 30 Jul 2025
UAE lodges complaint against Israeli ambassador over 'misbehavior'

UAE lodges complaint against Israeli ambassador over 'misbehavior'

  • Politics
  • 1 Aug 2025
An explosion seen during an Iranian missile attack on Tel Aviv, Occupied Palestine, June 13, 2025 (AP)

If Iran is attacked again, geography of response may change: IRGC spox

  • Politics
  • 30 Jul 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
A member of the al-Qassam Brigades, the armed wing of Hamas, takes part in a parade as he celebrates a ceasefire agreement between Hamas and the Israeli regime in Deir al-Balah, Gaza Strip, Sunday, January 19, 2025 (AP)
Politics

Al-Qassam: We’ll allow aid to Israeli captives if Gaza siege ends

Freed Lebanese freedom fighter Georges Abdallah during an interview on Al Mayadeen, which aired on Sunday, August 3, 2025 (Al Mayadeen screengrab)
Politics

Exclusive: Resistance key to building state, Georges Abdallah says

United Nations Secretary General Antonio Guterres gives a statement about the situation in Gaza at UN headquarters, Friday, June 27, 2025 (AP)
Politics

UN warns Gaza faces water crisis, looming famine under Israeli siege

Israeli soldiers drive their armored personnel carrier along the Gaza Strip, in southern occupied Palestine, Wednesday, July 30, 2025 (AP)
Politics

Ex-Israeli general says Gaza starvation campaign isolated 'Israel'

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS