20 Hrs
Source:
الاقتصادية
ECB faces challenges as US sells euros to calm yen decline
Washington's sudden decision last week to sell euros to support the Japanese yen confused the European Central Bank, which had no prior coordination, as it involved a direct intervention in the currency market. This marks a shift in international norms among central banks. The American intervention aimed to uphold the policy of a strong dollar by avoiding direct sales of dollars or US Treasury bonds, in order to dissuade Japan from selling its bonds and to prevent disruptions in the financial market. This joint intervention by Washington and Tokyo led to the yen rising from nearly 164 per dollar to about 158 yen, amid concerns over rising inflation in Japan and the possibility of higher interest rates at Japan's upcoming Bank of Japan meeting, amidst ongoing tensions in the currency markets.
Size: 120%Text Size
Notice: This Is an AI-Generated Summary
Comments (0)