Analyst: This is indeed a good time for the Japanese authorities to support the yen

On Thursday, 30 July, the Yenyen skyrocketed, and the market generally believed that this movement was typical of the Japanese government’s intervention in the market and its support of a 40-year low yen. The United States dollar fell by 3 per cent to 158.34, rising from 40 years earlier this week, and is expected to record the largest single-day fall since the end of 2022. For months, the Government of Japan has been warning that if the yen continues to weaken, action will be taken. As the price of energy imports soared and the yen depreciated further increased the cost-of-living pressure on the population, the market remained vigilant about the Japanese authorities ' intervention in buying the yen. The rise in the yen took place on the eve of the Japan Central Bank’s policy meeting on Friday, and after the Federal Reserve decided to keep interest rates unchanged on Wednesday, following a divisive vote that pushed the dollar to weaken. According to foreign exchange analysts, late month-end silo adjustments, weak economic data in the United States and the weakening of the United States dollar as a whole provide a good opportunity for the Japanese authorities to support the pressure on the yen. The Minister of Finance of Japan has recently reiterated several times that the Government is ready to take action in the foreign exchange market。