Yen is at its lowest level in a year amid fears of government intervention, the dollar is rising

The dollar rose on Thursday near its highest levels in two weeks as US Treasury yields rose and investors’ appetite for riskier currencies declined.

The yen’s exchange rate exceeded the level of 150 against the dollar, creating a state of concern among traders about the possibility of government intervention to control the price.

The yen recorded its lowest level in a year after reaching 150.48 against the dollar, close to its lowest level in 32 years at 151.94 to the dollar, which it touched in October of last year before the Japanese authorities intervened.

Japanese Finance Minister Shunichi Suzuki warned traders on Thursday against selling the yen again, saying that authorities were closely monitoring the movements. “I am closely monitoring market movements as I did previously,” Suzuki told reporters at the ministry.

Suzuki did not make any direct comment on the possibility of intervention.

The yen has fallen by more than 20 percent since the Federal Reserve (US Central) began its monetary tightening cycle in March 2022 to control inflation, while the Central Bank of Japan stuck to its very easy monetary policy, bucking the global trend.

US 10-year Treasury bond yields rose, resuming their rise to a 16-year high of five percent, which they reached briefly last Monday. The yield on ten-year US Treasury bonds reached about 4.959 percent on Thursday.

The Australian dollar fell to its lowest level in a year at 0.6271 per dollar, and in the latest trading fell 0.49 percent to 0.6278 per dollar. The sudden rise in inflation yesterday, Wednesday, raised expectations of new increases in interest rates.

The head of the Australian Central Bank said on Thursday that inflation data in the third quarter was in line with policymakers’ expectations, and the decision to raise interest rates is still under study.

The New Zealand dollar touched its lowest level in almost a year at 0.5774 US dollars, and in the latest trading fell 0.38 percent to 0.5779 US dollars.

Investors will focus on the European Central Bank’s decisions later on Thursday, while the euro touched a one-week low of $1.0542 earlier in the session. The single currency fell in recent transactions by 0.17 percent to $1.0545.

The European Central Bank is expected to keep interest rates unchanged at a record high level, ending a 15-month series of rises. He may discuss a faster reduction in his huge portfolio of government debt as he battles runaway inflation.

The pound sterling recorded in the latest transactions $1.2081, down 0.23 percent during Thursday, after touching the lowest level in three weeks at $1.2077 earlier in the session.

Against a basket of currencies, the dollar rose 0.188 percent to 106.75 after touching its highest level in two weeks at 106.78.