Bank of Japan Intervenes in Foreign Exchange Markets After Yen Slips to 24-Year Low

The greenback has been climbing higher while the Japanese yen touched a 24-year low. Japan then decided to intervene on foreign exchange markets (forex), for the first time since 1998. According to reports, the Bank of Japan carried out the first forex intervention since 1998. This was after the Japanese central banks had kept the benchmark rate low for quite some time. The intervention saw the yen rise as the U.S. dollar plunged against the Japanese currency during Thursday's trading sessions. The greenback has now stepped up and the yen's recent gains have begun to wane.

Bank of Japan Steps into the Forex Markets Buy-Side for the First time in over 2 Decades because of Yen's Struggle

The U.S. Dollar has been a dominant force in the world of fiat currencies. Recently, the Japanese yen hit a 24-year high which prompted the Bank of Japan (BoJ) to intervene. Reuters reported on Thursday that this was the first intervention by the Japanese central bank in forex markets since 1998, to revive the declining currency. This is the first buy side intervention since 1998. In 2011, the Bank of Japan sold yen through physical intervention.

The Japanese yen gained after the intervention but the JPY/USD currency rate still shows that the yen has fallen a lot against the greenback in the past six months. Steve Goldstein,'s chief markets analyst, spoke with Michael Hewson to question the yen’s long-term decline.

Hewson explained that the Bank of Japan seems to be keen to defend the 145/146 level given last week's rate check at similar levels. The Bank of Japan appears to be keen to defend the 145/146 level, given last week's rate checks at similar levels span>

Chinese Yuan, EU’s Euro and Other Fiat Currencies Get a Beat from the Robust Greenback — Yen’s Intervention Gains Begin to Erode

The yen isn't the only fiat currency in trouble. The Chinese yuan continues to fall against the greenback. The European Union's euro has reached parity with the U.S. dollars this week and is currently at $0.98 against U.S.$ at the time.

Masato Kanda is Japan's vice-finance minister for international affairs. He explained that after a 24-year decline in the yen, officials had "taken decisive action in exchange market." The DXY chart of the U.S. Dollar (DXY), has risen to 111.448, and gains made during morning trading sessions (ET), are slowly being lost. On Thursday afternoon (ET), the U.S. Dollar is also taking a beating.

What do you think of the Japanese yen falling to a 24-year low, and the Bank of Japan intervening via forex markets to correct the situation? Please comment below to let us know your thoughts on this topic.

Frequently Asked Questions

Can I buy Gold with my Self-Directed IRA?

Your self-directed IRA can be used to purchase gold, but first you need to open an account with a brokerage firm such as TD Ameritrade. You can also transfer funds from an existing retirement fund.

Individuals can contribute as much as $5,500 per year ($6,500 if married filing jointly) to a traditional IRA. Individuals may contribute up to $1,000 ($2,000 if married, filing jointly) directly into a Roth IRA.

You should consider buying physical gold bullion if you decide to invest in it. Futures contracts, which are financial instruments based upon the price of gold, are financial instruments. These financial instruments allow you to speculate about future prices without actually owning the metal. But, physical bullion is real bars of gold or silver that you can hold in one's hand.

What is the best precious metal to invest in?

This question is dependent on the amount of risk you are willing and able to accept as well as the type of return you desire. Although gold has traditionally been considered a safe investment choice, it may not be the most profitable. For example, if you need a quick profit, gold may not be for you. Silver is a better investment if you have patience and the time to do it.

If you're not looking to make quick money, gold is probably your best choice. Silver may be a better option for investors who want long-term steady returns.

What precious metals can you invest in for retirement?

Gold and silver are the best precious metal investments. Both can be easily bought and sold, and have been around since forever. These are great options to diversify your portfolio.

Gold: This is the oldest form of currency that man has ever known. It is very stable and secure. Because of this, it is considered a great way of preserving wealth during times when there are uncertainties.

Silver: The popularity of silver has always been a concern for investors. This is a great choice for people who want to avoid volatility. Silver tends to move up, not down, unlike gold.

Platinum: This precious metal is also becoming more popular. It's resistant to corrosion and durable, similar to gold and silver. It is, however, more expensive than its competitors.

Rhodium. Rhodium is used as a catalyst. It is also used as a jewelry material. It is also quite affordable compared with other types of precious metals.

Palladium (or Palladium): Palladium can be compared to platinum, but is much more common. It's also less expensive. Investors looking to add precious and rare metals to their portfolios love it for these reasons.

How does a gold IRA work?

Individuals who want to invest with precious metals may use the Gold Ira accounts, which are tax-free.

Physical gold bullion coin can be purchased at any time. You don't have to wait until retirement to start investing in gold.

An IRA lets you keep your gold for life. Your gold assets will not be subjected tax upon your death.

Your heirs inherit your gold without paying capital gains taxes. You don't need to include your gold in your final estate report, as it isn't part of the estate.

You'll first have to set up an individual retirement account (IRA) to open a gold IRA. Once you've done so, you'll be given an IRA custodian. This company acts like a middleman between the IRS and you.

Your gold IRA custody will take care of the paperwork and send the forms to IRS. This includes filing annual reports.

After you have established your gold IRA you will be able purchase gold bullion coin. The minimum deposit required to purchase gold bullion coins is $1,000 A higher interest rate will be offered if you invest more.

When you withdraw your gold from your IRA, you'll pay taxes on it. If you're withdrawing the entire balance, you'll owe income taxes plus a 10 percent penalty.

However, if you only take out a small percentage, you may not have to pay taxes. There are exceptions. If you take out 30% of your total IRA assets or more, you will owe federal income taxes and a 20 percent penalty.

Avoid taking out more that 50% of your total IRA assets each year. A violation of this rule can lead to severe financial consequences.


  • (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (
  • If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (
  • If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (
  • Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (
  • Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (

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The History of Gold as an Asset

From the ancient days to the early 20th Century, gold was a common currency. It was universally accepted due to its purity and divisibility, beauty, scarcity, and durability. It was also traded internationally due to its high value. However, since there were no international standards for measuring gold at this point, different weights and measures existed worldwide. For example, one pound sterling in England equals 24 carats; one livre tournois equals 25 carats; one mark equals 28 carats; and so on.

The United States started issuing American coins in the 1860s made of 90% copper and 10% zinc. This led to a decrease of demand for foreign currencies which in turn caused their prices to rise. This was when the United States started minting large quantities of gold coins. The result? Gold prices began to fall. The U.S. government needed to find a solution to their debt because there was too much money in circulation. They decided to sell some excess gold to Europe in order to do this.

Many European countries began accepting gold in exchange for the dollar because they did not trust it. However, many European nations stopped using gold to pay after World War I and started using paper currency instead. The gold price has gone up significantly in the years since. Even though gold's price fluctuates, it is still one of the most secure investments you could make.

By: Jamie Redman
Title: Bank of Japan Intervenes in Foreign Exchange Markets After Yen Slips to 24-Year Low
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Published Date: Thu, 22 Sep 2022 17:30:58 +0000

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