Possibillity of yen intervention rises
The yen surged to 15-year low on Friday against the dollar as fading confidence for the global economy have risen demand for the Japanese currency.
Will Bank of Japan intervene?
The latest move raised currency speculation of the Japanese central bank intervening in the forex market, which is rather uncommon for Bank of Japan. Last time they intervened in the currency market was 6 years ago. Last week, Japanese shares dropped as an effect of the rising Yen. Japanese official have almost daily warned about the strong yen, and market participiants now fear BOE to intervene within short.
Rising risk aversion also rised the demand for safe heaven currencies such as the Swiss franc.
What do you think will happen with the Japanese yen and US Dollar the coming weeks?
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