On September 22, 2022, Japan entered the foreign exchange market to purchase yen for the first time since 1998 to assist the battered yen after the Bank of Japan decided to maintain its record-low interest rates. Owing to the BOJ's decision to maintain its ultra-loose policy stance, which defied a global trend of central banks tightening their monetary policies to combat skyrocketing inflation, it had previously traded more than 1% higher.
It remains to be seen how long this action would halt the yen's steady decline. The dollar strengthened in 2022 because of the aggressive interest rate hikes in the US, which caused the currency to lose 20% of its value and drop to a 24-year low.
The BOJ's decision came after the US Federal Reserve delivered its third straight rate increase of 75 basis points on 21st September and signaled more hikes ahead, underscoring its resolve to not allow any let-up in its battle against inflation and strengthening the dollar. Japan also stood alone among major economies in keeping short-term rates in negative territory after the Swiss National Bank on 22st September raised its policy rate by 75 basis points, ending years of negative rates aimed at taming the appreciation of its currency.
Don’t wait - discover a universe of connected data & insights with your next search. Browse over 28M data points across 22 industries.
Access more premium companies when you subscribe to Explorer
Contact the team or request a demo to find out how our data can drive your business forward