Japan postponed foreign exchange market intervention in November – Ministry of Foreign Affairs of Japan

TOKYO: Japan has refrained from intervening in non-Vember currency markets for the first time in three months, the finance ministry said Wednesday. This is due to growing speculation that the US Federal Reserve (Fed) will slow down the pace of rate hikes as inflation peaks.

Monthly data showed Japan closely watching for signs of a stealthy intervention in November to stem the yen’s depreciation against the dollar as officials remain tight-lipped on currency action.

In September, Japan stepped into the market to support its currency for the first time since 1998. His intervention last month saw a record buying of ¥6.35 trillion as Japan’s currency then hit her 32-year low near $152 a dollar.

Expectations of aggressive US interest rate hikes and the Bank of Japan’s insistence on monetary stimulus pushed the dollar to a 32-year high against the yen last month.

But while this month’s weaker-than-expected inflation data has added some heat to the prospect of aggressive rate hikes by the US Federal Reserve, the Bank of Japan remains committed to ultra-low interest rates.

As a result, the dollar fell to about 138.7 yen against the dollar by Wednesday.

Japan’s past forays into the market were aimed at stemming the yen’s appreciation to benefit vital exports, but this year’s depreciation of the yen against the dollar has prompted authorities to ensure the yen’s depreciation does not push up the cost of living. spurred a rare measure by

($1=146.8700 yen)