Japanese financial authorities have raised alarms over rapid foreign exchange movements as the dollar touched 159.94 yen, its strongest point in over two months. The currency's ongoing depreciation drove Japan's yen-based import price index up by 24.8 percent year-on-year in October. Meanwhile, persistent U.S. inflation and expectations of further Federal Reserve interest rate hikes continue to reinforce dollar strength. Analysts warn that Tokyo might resort to unilateral intervention if breaching the 160 threshold damages public support for Prime Minister Sanae Takaichi's government.
Key points
Federal Reserve rate hike expectations and resilient U.S. inflation continue to drive the…: Federal Reserve rate hike expectations and resilient U.S. inflation continue to drive the dollar toward the 160 yen threshold.
Rising domestic import costs risk eroding public approval for Prime Minister Sanae Takaic…: Rising domestic import costs risk eroding public approval for Prime Minister Sanae Takaichi's administration.
Tokyo may consider unilateral currency intervention if excessive dollar strength persists…: Tokyo may consider unilateral currency intervention if excessive dollar strength persists and fuels further domestic inflation.
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TOKYO, Nov 12 : Japan's top currency diplomat Atsushi Mimura on Thursday warned market participants that it's "too early to forget" this summer's intervention as the yen again edged towards the key 160-per-dollar level.
In his first remarks on foreign exchange since late September, Mimura said he believed that recent currency moves have been excessively rapid.
"It's still too early to forget what happened this summer," he added, referring to Japan's yen-buying interventions in late July through early August, including one conducted jointly with the US.
The dollar rose to 159.94 against the Japanese yen early Thursday morning, hitting its strongest in over two months, buoyed by growing expectations that the Federal Reserve will raise interest rates after hot US inflation data and hawkish remarks from policymakers.
The weak yen has been a headache for Japanese policymakers as import costs have surged. The yen-based import price index jumped 24.8 per cent in October from a year earlier, data showed on Thursday.
"The dollar is likely to continue rising against the yen, underpinned by the resilience of the U.S. economy and…
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Shares of Samsung Life are experiencing a rally today. Further details regarding the specific drivers, figures, and market factors behind the upward movement have not yet been provided.
Shares of Samsung Life are experiencing a rally today. Further details regarding the specific drivers, figures, and market factors behind the upward movement have not yet been provided.