Logo

Yen rises 0.1% against USD, while the dollar remains strong and continues to climb.

TraderKnows
TraderKnows
06-27

After Japanese authorities strongly stated their support for the yen, its exchange rate experienced a slight increase, but the dollar's performance was even stronger.

On Thursday, the yen lingered near its lowest level in 38 years, fluctuating above 160 against the dollar, as the market closely watched whether Japanese authorities would intervene to support the currency.

In the broader market, the dollar performed strongly due to the yen's weakness and climbed in sync with U.S. Treasury yields, nearing an eight-week high.

In early Asian trading, the yen rose slightly by 0.1% to 160.63 against the dollar, but remained close to the low of 160.88 hit on Wednesday, the weakest level since 1986.

With significant interest rate differences between the U.S. and Japan, the yen continued to be used as a funding currency for carry trades, dropping about 2% against the strong dollar this month and accumulating a 12% decline for the year.

In carry trades, investors borrow low-interest-rate currencies and invest the proceeds in high-yield assets.

Despite this, the yen's recent drop below the crucial 160 mark against the dollar has raised concerns among traders about possible intervention from Tokyo. From late April to early May this year, Japanese authorities spent 9.79 trillion yen (approximately 6.094 billion dollars) to push the yen up 5% from a 34-year low of 160.245.

SKYPE TU

公众号2

Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

The End

Wiki

Foreign Exchange Trading

Foreign exchange trading is a financial trading activity that seeks profit through the exchange rate differences between different countries' currencies. It is characterized by globalization, high liquidity, and leveraged trading. Participants include central banks, commercial banks, investment institutions, enterprises, and individual investors. However, it also involves potential risks such as market fluctuations and leverage risks.

Organization

Related News

Risk Warning

TraderKnows is a financial media platform, with information displayed coming from public networks or uploaded by users. TraderKnows does not endorse any trading platform or variety. We bear no responsibility for any trading disputes or losses arising from the use of this information. Please be aware that displayed information may be delayed, and users should independently verify it to ensure its accuracy.

Logo

Contact Us

Social Media

footer1