Yen Soars, Nikkei Closes in the Red! Is There a Smell of Intervention?
The Japanese yen strengthened sharply against the US dollar, briefly reaching 153.81 per dollar, its strongest level since mid-November. This strengthening occurred after Japanese Prime Minister Sanae Takaichi issued a stern warning about speculative movements in the market, sparking concerns about currency intervention. Hints that the United States could support Japan's move have made market participants even more cautious.
As the yen strengthened, the Japanese stock market came under pressure. The Nikkei 225 index closed down 1.8%, while the bond market trended higher. The Japanese government emphasized that it would coordinate closely with the US and was ready to act in accordance with previous mutual agreements. Senior Japanese officials also emphasized that current currency movements were being monitored with a high degree of urgency.
Analysts believe that expectations of intervention alone would be enough to push the yen higher. A stronger yen is considered to suppress imported inflation, particularly food and energy prices. In the past two trading days, the yen has strengthened nearly 3%, marking one of the largest gains since last year's major market turmoil. (az)
Source: Newsmaker.id
