Tuesday, June 7, 2022 – 9:30 PM
TOKYO, June 7 / WAM/ The US dollar touched the threshold of 133 Japanese yen for a brief period in the Tokyo market trading today for the first time since April 2002, and closed at a value of 132.77 yen. The value of the euro was 141.90 yen.
The US dollar rose to 132.96 – 132.98 Japanese yen around 3 pm local time, its highest level since April 2002.
The trading was affected by the statement of the Governor of the Central Bank of Japan Haruhiko Kuroda at a meeting of the Japanese Parliament that the bank will continue patiently the monetary easing policy.
It is important that exchange rates remain stable and reflect economic fundamentals, Japanese Finance Minister Shunichi Suzuki said in a statement to reporters, adding, “We are monitoring the movements of the foreign exchange market and their impact on the Japanese economy urgently.”
A currency broker said the US dollar later gave up some gains, as it attracted a position-adjusting sell-off that reflected a sense of accomplishment among market participants after hitting 133 yen. The dollar was also affected by a drop in the major long-term US Treasury bond yields outside of trading hours.
However, analysts said the dollar’s drop below 133 yen in late trade was “just a quick correction” and expected the dollar to move in an upward direction buoyed by Japanese and foreign interest rate gaps that are expected to widen further.
Wam/Zahk/Imad Al-Ali