Japanese Yen Drops On Intervention Euro Remains Weak Amid Slow Economy

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Japanese Yen Drops On Intervention Euro Remains Weak Amid Slow Economy

Japanese Yen Drops On Intervention Euro Remains Weak Amid Slow Economy

On Monday, the Japanese Yen (JPY) dropped against the US Dollar to 8-month lows amid talks of possible intervention by the Bank of Japan. On the other hand, the Euro currency is also weak amid fears of slow economic growth in China, Europe, & other parts of the world.

As we approach the July 4th holidays, the US dollar (USD) edged higher as the data shows improvement in consumer spending and inflation.

Yen (JPY) Drops 0.37% Against US Dollar

Overall, the Japanese Yen (JPY) lost 0.37% of its value against the US Dollar and was last seen trading at 144.86. According to experts, the current levels of the USD/JPY reveal that the Japanese Yen is at a multi-month low against the US Dollar, as such levels were only last seen on November 2022.

During the first six months of 2023, the USD/JPY pair gained 9% upside which is a show of USD strength and JPY weakness. Now that the JPY is at historic lows, the chances of currency market intervention by the BoJ have increased tremendously.

According to HSBC's FX research head, the Yen (JPY) is now on the intervention watch. They also added that the focus will now be on the wage Growth in Japan that's due in the next few days.

In September 2022, Japan's central bank supported the Yen which was the first time since 1998. Just a month later, the BoJ intervened again as the JPY was trading at a 32-year low against the US Dollar.

If we look at the Euro, it is weighed down by fears of slow economic growth across the globe. After all, the news coming from China reveals that even the economic powerhouse is struggling to keep up with viable economic growth.

A recent survey revealed that factory activity growth in China has slowed down. At the same time, the sentiments and the economic indicators coming out of China also reveal sluggish growth that's pushing the Euro down.

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