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
Al Mayadeen's correspondent in Gaza: Four fetuses and three premature babies died at Nasser Medical Complex due to malnutrition
Lebanese Ministry of Health: One person was killed in an Israeli airstrike on a car in the town of Burj Qalawieh, south Lebanon.
Al Mayadeen correspondent: The first ship of the Maghreb fleet delivering aid to break the siege on Gaza departs from the port of Gammarth in Tunisia.
Channel 12: Airspace closed at Ramon Airport due to fears of drone infiltration
IOF Spokesperson: Sirens sounded over an aircraft infiltration in the Bir Ora area, and details are being examined
Drone infiltration sirens sound north of the Gulf of Aqaba
Al Mayadeen's correspondent in Gaza: The Israeli occupation carried out five extremely violent raids on the western areas of Gaza City
Al Mayadeen's correspondent in Gaza: The Israeli occupation carried out major bombings in the Gaza Strip, the most violent since October 7
Yemeni Armed Forces spokesperson Brigadier General Yahya Saree: The missile force carried out a major operation using the Palestine 2 ballistic hypersonic missile, hitting several targets in occupied Yafa.
Sirens sound in large areas of occupied Palestine after a missile launch from Yemen was detected

Japan makes first currency intervention as yen value deteriorates

  • By Al Mayadeen English
  • Source: Agencies
  • 22 Sep 2022 17:34
  • 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

New California: The push for a breakaway state - Newsweek

Trump to 'Israel': 'We have to be careful when we attack people'

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

The damaged building in the Katara neighborhood, Doha, Qatar, September 9, 2025 (Social media)

Hamas delegation survives Israeli assassination attempt in Qatar

  • Politics
  • 9 Sep 2025
Israeli police and rescue teams respond at the scene of a shooting attack where several people killed and injured in Jerusalem, Monday, Sept. 8, 2025 (AP)

Al-Quds shooting: 7 settlers killed, several critically injured

  • Politics
  • 8 Sep 2025
Pro-"Israel" conservative Charlie Kirk shot during Utah speech

Pro-'Israel' far-right Charlie Kirk shot dead during Utah speech

  • US & Canada
  • 11 Sep 2025
Uprising against Volker Turk at the Human Rights Council over Gaza.

Uprising against Volker Turk at the Human Rights Council over Gaza

  • Politics
  • 12 Sep 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
People protest against Israeli Prime Minister Benjamin Netanyahu during the 79th session of the United Nations General Assembly, in New York, on Friday, September 27, 2024 (AP)
Politics

'Israel' stops unfunded diplomacy ahead of UN, October 7 memorial

An Israeli Air Force fighter jet releases flares over the Gaza Strip, is seen from southern occupied Palestine, Thursday, May 8, 2025 (AP)
Politics

OIC summit draft: Israeli attack on Qatar risks normalization

People shout slogans and hold Palestinian flags while protesting during the twenty-first stage of La Vuelta cycling race from Alalpardo to Madrid, Spain, Sunday, Sept. 14, 2025. (AP)
Sports

Pro-Palestine protests force abrupt end to Vuelta a España finale

Damage is seen after an Israeli strike targeted a compound that hosted Hamas' political leadership in Doha, Qatar, on Wednesday, September 10, 2025 (AP)
Politics

Israeli regime faces growing isolation over Qatar strike: Reports

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