The Japanese yen fell in the European market on Monday against a basket of global currencies, to continue its losses for the second day in a row against the US dollar, recording the lowest level in two weeks, due to the Japanese central bank and its unscheduled bond purchases, as part of its continuous efforts to support the recovery of the third largest economy in the world. .
The Japanese currency is about to achieve a monthly gain, the first in the last four months, after trading late last month for a while below 145 yen per dollar, and the authorities intervened to support the local currency.
Japanese yen exchange rate today
The dollar rose against the yen by 0.8%, to (141.94 yen), the highest since July 21, from today's opening price at (140.84 yen), and it recorded the highest level at (140.68 yen).
The yen ended Friday's trading down by 1.25% against the dollar, in the first loss in the last five days, following the end of the Japanese central bank's monetary policy meeting.
Japanese central bank
The Bank of Japan announced unscheduled bond purchases to buy debt, in an effort to contain the sell-off after saying on Friday that it would allow yields to rise above the 0.5% cap.
The Bank of Japan decided on Friday, in line with most expectations, not to make any changes to its accommodative monetary policy tools, and to keep interest rates unchanged at a record level of -0.1%.
As for the government bond yield curve control policy, the Bank of Japan decided to keep the 10-year government bond yield target unchanged at 0.00%, while keeping the maximum yield at 0.50%.
However, he said that controlling the yield curve will work more flexibly up and down, and that the lower (0.00%) and upper (0.50%) limits of yield serve as a reference point, and not as strict limits in open market operations.
The Bank of Japan said that it is now appropriate to keep monetary policy unchanged, to support the country's economic recovery, and stressed that it will continue to buy government bonds on a large scale, and made it clear that it will not hesitate to take additional easing measures if necessary.
monthly transactions
In terms of July transactions, which officially end at price settlement today, the Japanese currency, the yen, is still high by 1.7% against the US currency, and the dollar is about to achieve its first monthly gain in the last four months.
The Japanese yen traded for a very short period on June 30, below 145 yen per US dollar for the first time in seven months, before entering a strong upward wave, in a sign of the intervention of the Japanese authorities to support the currency.
The rally followed Japanese Finance Minister Shunichi Suzuki's remarks that Japan will take appropriate steps in response to the excessive weakness of the yen, in the latest comment from Japanese authorities to support the local currency.
