PT Solid Gold Berjangka | Yen’s Slide to Multi-Decade Lows Keeps Markets on Intervention Alert

02:21 14 November in Commodity, PT SGB, SOLID GOLD BERJANGKA | SOLID GROUP

Yen Euro Dolar AS Dolar Australia, Poundsterling

Solid Gold Berjangka | The provided text is a news article that discusses the current state of the Japanese yen in the foreign exchange market, as well as broader developments in global currency markets. Here are some key points from the article:

  1. Japanese Yen’s Performance:
    • The yen is struggling near a three-decade low against the U.S. dollar.
    • It has also reached a 15-year low against the euro and a three-month low against the British pound.
    • The yen against the dollar is at 151.72, close to a one-year low of 151.92.
  2. Bank of Japan’s Monetary Policy:
    • The article mentions that the Bank of Japan (BOJ) continues to maintain ultra-easy monetary policy settings.
    • Despite hints of a shift in policy, such as phasing out the yield curve control (YCC) policy and talks of ending negative interest rates, these moves have not supported the yen.
  3. Global Central Banks and Interest Rates:
    • Central banks globally are maintaining a hawkish stance, suggesting the likelihood of higher interest rates for an extended period.
    • The prospect of higher rates elsewhere is at odds with the BOJ’s monetary policy, impacting the yen’s performance.
  4. Previous Japanese Interventions:
    • Japanese authorities intervened in the currency market in September of the previous year and again in October 2022 to boost the yen. This intervention followed a BOJ decision to maintain ultra-loose monetary policy.
  5. U.S. Inflation and Federal Reserve’s Actions:
    • Traders are keeping an eye on U.S. inflation figures, expecting clarity on whether the Federal Reserve might raise interest rates further to address inflation.
    • Recent comments from Fed Chair Jerome Powell and policymakers suggest a willingness to continue a rate-hike cycle, keeping the U.S. dollar bid.
  6. Other Currency Movements:
    • The U.S. dollar is rising against a basket of currencies, partly influenced by the Federal Reserve’s recent comments.
    • Sterling is stable, and the euro has been trading sideways in recent sessions.
    • The New Zealand dollar is near a one-week low, and the Australian dollar has edged slightly higher.
  7. Australian Business Conditions:
    • A survey indicates that Australian business conditions remained firm in October, although confidence slipped a bit. The resilience of business conditions will be tested by higher borrowing costs following an official interest rate increase.
  8. Source:
    • The information is sourced from Reuters.

In summary, the article provides an overview of the challenges faced by the Japanese yen in the foreign exchange market, with a focus on the Bank of Japan’s policies, global interest rate trends, and the broader performance of major currencies.