Yen down to pre-intervention level of 160 per dollar after Fed chair speech
NEW YORK (Kyodo) -- The Japanese yen briefly fell below 160 per U.S. dollar on Friday in New York for the first time since Japan conducted coordinated
The Japanese yen experienced a significant drop, falling below 160 per U.S. dollar for the first time since a coordinated yen-buying operation with the United States in late July, according to Kyodo. This decline occurred in New York after Federal Reserve Chair Kevin Warsh's speech in Jackson Hole, Wyoming, which sparked speculation about a widening gap between interest rates in the two nations.
In his remarks, Warsh suggested that the Federal Reserve might consider raising interest rates if inflation can be kept under control, stating, "We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do." The recent depreciation of the yen against the dollar has been partly attributed to the historical U.S.-Japan interest rate differentials.
This was the first joint market intervention by the two countries in 15 years, involving the simultaneous buying of yen and selling of dollars.
Written by urgent.news from The Mainichi's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
