The start of the year 2022 has been cruel to almost every sector as the economic pressure is being felt across the globe. The macroeconomic as well as the microeconomic pressures have continued building all over the world.
Even the countries that had the strongest economies have started feeling the pressure. It is quite a shock to see that the countries with the strongest economies are facing the worst economic pressure.
Countries with Major Economies Implement Interest Hikes
Countries such as the United States, the United Kingdom, and South Korea are all considered the largest and the strongest economies.
Even these countries have to make huge changes to their policies to control the rising inflation rates. However, there is a similarity between these countries as they are all resorting to hiking interest rates to fight off inflation.
As a result, a great shift and fluctuation is being witnessed in
Japan Takes its Own Measures
Like the rest of the major countries, Japan is facing an economic demise. However, its way of dealing with the economic pressure and the rising inflation rates is different from other countries
This is the reason why almost every major forex exchange is paying a close attention towards the Japanese yen. The traders are also eager to know how the yen would perform against the dollar.
As the Japanese economy is suffering, it is also causing a major setback for the Japanese yen. Its price is constantly experiencing a decline versus the greenback
Japan Intervenes
Although the economists have advised that Japan must proceed with interest rate hikes but the government of Japan wants to do thing its own way
The finance ministry of Japan has intervened the forex markets advising the traders and the forex brokers not to sell the yen and hold onto it.
The finance ministry has also intervened in the forex markets throwing out more than $40 billion into the market. The government has done it in four different sessions in October and in September ad well
The government aims to do the same in November as it believes that the value of the yen would recover because of its intervention.