The Japanese yen rose in the Asian market on Monday against a basket of global currencies, extending its gains for the third day in a row against the US dollar, recording the highest level in six weeks, after trading above the 150 yen barrier in the strongest signals about the intervention of the Japanese authorities to support the local currency.

The Japanese currency also benefited from the broad decline in the yield on US 10-year Treasury bonds, as concerns about the widening gap between long-term bond yields between Japan and the United States receded.

Japanese yen exchange rate today

The dollar fell against the yen by more than 0.5% to (148.70 yen), the lowest since last October 11, from today’s opening price of (149.50 yen), and recorded the highest level at (149.99 yen).

On Friday, the yen achieved a 0.8% rise against the dollar, the second daily gain in a row, and the largest daily gain since last July 12, thanks to the decline in US yields and the statements of the Japanese Finance Minister.

The Japanese yen achieved an increase of 1.3% last week against the dollar, the third weekly gain in a month, and the largest weekly gain since last July, as covering short- and medium-term selling positions accelerated, coinciding with inflows of new buying positions.

Barrier 150 yen

There is no doubt that the yen trading above 150 yen per dollar is a strong sign of the intervention of the Japanese authorities to support the local currency against excessive weakness. The currency recorded earlier last week the lowest level in 13 months at 151.90 yen, close to the 151.94 yen level, the lowest since 1990. .

Japanese Finance Minister Shunichi Suzuki said last week that he is closely monitoring currency movements in the forex market. Suzuki added: We will continue to take all possible measures to address chaotic exchange market movements.

The minister also said that now there is a great opportunity to overcome the economic downturn in the country, and that there are bright signs showing the recovery of the Japanese economy.

Yield on US Treasury bonds

The yield on ten-year US Treasury bonds on Monday traded near the lowest level in two months at 4.381% recorded earlier in Friday trading, which reduces investment opportunities in the US dollar.

Economic data in the United States last week showed that more inflationary pressures on monetary policy makers at the Federal Reserve were receding, which reduced the chances of raising US interest rates next month to less than 1%.

It reinforced the hypothesis that the US Central Bank has already finished its monetary tightening cycle and raised interest rates in the United States after the recent increase that took place at last July’s meeting.

The continued decline in US bond yields is in favor of an increase in the Japanese yen exchange rate against the US dollar, as the gap between long-term bond yields between Japan and the United States shrinks.