![]() ![]() I still adhere to selling the US dollar against the Japanese yen (USD/JPY) from its highest levels if it breaches the psychological resistance level of 150.00. Last October's lows were the weakest for the Japanese currency since the early 1990s. The country spent about $65 billion in total to support the yen on three occasions from September to October, the first time it intervened in 24 years. The first intervention by Japan came last year when the Japanese yen fell to 145.90 against the dollar in September. He said yesterday that he would not judge the possibility of intervention in the Forex currency market by currency levels but by fluctuations. Finance Minister Shunichi Suzuki warned of currency fluctuations for six consecutive days until Tuesday. ![]() In Japan, Masato Kanda, the Finance Ministry's chief currency official, said he was in close contact with his American counterparts, as both sides agreed that excessive currency movements were not welcome. The yield on 30-year bonds rose to the highest level since 2007 after a report showed that job opportunities in the United States unexpectedly increased in August. On the other hand, US Treasury bonds continued to sell on Tuesday. It also helps the country's exports by making them less expensive abroad. In general, a weak Japanese yen makes imports more expensive for Japan, which could lead to higher prices. Meanwhile, traders were testing Japanese policymakers' commitment to ultra-loose monetary policy amid strong inflation, putting pressure on both the yen and the country's government bonds. Yesterday, the Bloomberg US Dollar Index rose to its strongest levels since November. In general, the US dollar has been on a tear over the past two and a half months, as investors digested the possibility that the Federal Reserve would keep US interest rates high for a longer period to tame inflation. Commenting on the performance, Bipin Rai, a forex analyst at CIBC, said of the possibility that Japanese officials may have acted: “ We won’t know until the official confirmation, but it sure seems like that.”Ī Japanese Finance Ministry official had no comment on whether Japan had intervened in the yen's price. It last traded at around 149.20, with traders selling the Japanese yen again as US bond yields rose to the highest level since 2007. The central bank began issuing New Taiwan dollar banknotes in July 2000, and the notes issued by the Bank of Taiwan were taken out of circulation.The yen then rose nearly 2% within seconds to 147.29 yen to the dollar. Prior to 2000, the Bank of Taiwan issued banknotes as the de facto central bank between 19, and after 1961 continued to issue banknotes as a delegate of the central bank. The central bank of Taiwan has issued the New Taiwan Dollar since 2000. Colloquially, the currency unit is called both 元 and 塊 in Mandarin, 箍 in Hokkien, and 銀 in Hakka. The unit of the dollar is typically informally written with the simpler equivalent character as 元, except when writing it for legal transactions such as at the bank, when it has to be written as 圓. There are a variety of alternative names for the units in Taiwan. The basic unit of the New Taiwan dollar is called a yuan and is subdivided into ten chiao, and into 100 fen or cents, although in practice both chiao and fen are never actually used. The New Taiwan dollar has been the currency of the island of Taiwan since 1949, when it replaced the old Taiwan dollar, at a rate of 40,000 old dollars per one new dollar. The New Taiwan dollar is the official currency of the Republic of China. The yen had appreciated to a peak of ¥271 per US$ in 1973, then underwent periods of depreciation and appreciation due to the 1973 oil crisis, arriving at a value of ¥227 per US$ by 1980. When that system was abandoned in 1971, the yen became undervalued and was allowed to float. To stabilize the Japanese economy, the exchange rate of the yen was fixed at ¥360 per US$ as part of the Bretton Woods system. ![]() The Bank of Japan was founded in 1882 and given a monopoly on controlling the money supply.įollowing World War II, the yen lost much of its prewar value. The yen replaced the previous Tokugawa coinage as well as the various hansatsu paper currencies issued by feudal han. The New Currency Act of 1871 introduced Japan's modern currency system, with the yen defined as 1.5 g of gold, or 24.26 g of silver, and divided decimally into 100 sen or 1,000 rin. It is also widely used as a third reserve currency after the US dollar and the euro. It is the third-most traded currency in the foreign exchange market, after the United States dollar and the euro. The yen is the official currency of Japan. ![]()
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