The Japanese yen awaits an intervention. Overview for 03.10.2023

3 октября 2023 - Fx4News

The Japanese yen continues to devaluate against the US dollar. The current USDJPY exchange rate is 149.87.

The Japanese government is prepared to take measures against the devaluation of its national currency, as stated by the Ministry of Finance. The authorities emphasise their commitment to maintaining control over the situation.

These comments are regarded as verbal interventions; however, they have not succeeded in cooling down the JPY exchange rate.

In October 2022, the JPY came close to the psychologically significant threshold of 150 USD, marking a 32-year low in the exchange rate. During that time, the government implemented a series of fiscal interventions, which helped alleviate the overbought condition of the USDJPY pair.

The market has been expecting interventions for weeks. However, for now, the authorities are limiting themselves to cautious comments.