Japan and China intervene in the draw

The recent lows in Asian currencies have prompted Japan and China to intervene in the exchange rate. The recent lows in Asian currencies, in response to the dollar's resurgence, have prompted Japanese and Chinese authorities to take action. While Japan prefers the verbal warning method, China continues to use the yuan fixing tool. Deputy Finance Minister Masato Kanda, who is seen as the number one exchange rate official in Japan, said that they "may take action against speculative movements in the exchange rate if necessary." The dollar/yen exchange rate rose to 147.8 this morning, reaching its highest level since November 2022. After Kanda's statement that "If these movements in the exchange rate continue, every option will be on the table," the exchange rate fell slightly, but is trading at 147.5 in the morning. China, on the other hand, continues its interventions through the reference rate. The People's Bank of China has set a strong dollar/yuan reference rate in favor of the yuan at 7.1969. However, the dollar/yuan exchange rate rose by 0.3 percent to 7.3248, its highest level since November 2022.