The yen, the other super-strong safe-haven currency
Japan is intervening in the foreign exchange market, buying dollars and selling yen in an attempt to stop the escalation of its currencies against the dollar.
Japan’s intervention in the market, the third since 2010, follows the recent intervention by the Swiss National Bank to halt the “overvaluation” of the mark before the dollar and euro.
The yen and Swiss franc have increased in value in recent months as investors move to safer currencies. Finally, the Japanese authorities decided to intervene because the yen “extremely” strong impairs its trade balance and its exports, as Japanese goods become more expensive and less competitive abroad.
After Japan’s intervention today the dollar gained some ground.