The Japanese yen rose in the Asian market on Wednesday against a basket of global currencies, holding above the lowest level in two weeks against the US dollar, due to investors’ aversion to risk, focusing on buying safe assets, amid the escalation of the war in the Middle East.
The Japanese currency came under pressure yesterday, Tuesday, after the Bank of Japan unexpectedly announced $2 billion in bond purchases to maintain downward pressure on yields.
Japanese yen exchange rate today
The dollar fell against the yen by 0.2% to (149.48 yen), from the opening price of today’s trading at (149.80 yen), and recorded the highest level at (149.82 yen).
Yesterday, Tuesday, the Japanese yen lost 0.2% against the dollar, the first loss in the last three days, and recorded the lowest level in two weeks at 149.85 yen per US dollar, due to the rise in US bond yields, and after the Bank of Japan purchased government bonds.
Middle East war
Hopes for the possibility of reaching a diplomatic solution to the raging war between the Islamic Resistance Movement Hamas and Israel have deteriorated, after the Israeli army bombed a field hospital in Gaza, resulting in nearly 1,000 deaths.
This escalation from the Israeli side comes before the scheduled visit of United States President Joe Biden to Israel today, Wednesday. A four-way summit was scheduled to be held in the Jordanian capital, Amman, including the American president with the presidents of Jordan, Egypt, and Palestine, before its cancellation was announced after the resounding bombing of the Baptist Hospital in Gaza.
Central Bank of Japan
In the latest steps to support the economy, the Bank of Japan unexpectedly announced Tuesday the purchase of bonds worth $2 billion to maintain downward pressure on yields.
This measure reinforced expectations about the difficulty of the Bank of Japan making any adjustments to the ultra-easy monetary policy tools in the near term, as the third largest economy in the world is still far from its growth targets.
