Japan Central Bank Acts to Stem Yen’s Decline Against Dollar

Japan’s central bank took the unusual step Thursday of intervening in the market to stem the yen’s decline against the U.S. dollar, the Associated Press reported. Earlier in the day, the dollar rose to nearly 146 yen — a 24-year low — after the Bank of Japan left its key lending rate unchanged following the U.S. Federal Reserve’s decision to raise its benchmark rate by three-quarters of a percentage point. The dollar later fell sharply to about 142 yen. It was trading at 143.05 yen early Thursday morning U.S. time, and it was unclear if the BOJ’s action would suffice to keep the yen at a stable level. Masato Kanda, the vice minister of finance for international affairs, confirmed the dollar selling and yen buying intervention to local reporters, saying the central bank had made a “bold move.” The BOJ does not usually announce such measures itself. Finance Minister Shunichi Suzuki said in televised remarks that the government and central bank had agreed that recent volatility in the currency market was undesirable. He would not give the scale of the intervention. Read more.
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