Japan Intervenes in FX Market After Yen Hits 40-Year Low Above 163
Japanese authorities stepped into the foreign exchange market to sell dollars and buy yen after the currency weakened past 163, its lowest level in nearly four decades.
Japan's Ministry of Finance intervened in currency markets on [date not specified in source], selling U.S. dollars and purchasing yen in an effort to stem the currency's sharp decline. The move came after USD/JPY breached the 163 level, marking the yen's weakest exchange rate in nearly 40 years.
The intervention was unexpected and triggered sizable moves across both the yen and Japanese stock markets. Authorities typically step in to smooth excessive volatility and counter disorderly moves that could harm the economy.
No further details on the scale of the operation were immediately available. The yen's recent slide had been driven by persistent interest-rate differentials between Japan and other major economies.
Source: FXStreet Forex News