The yen has slumped to a level that leaves it on track for its worst year on record, prompting the strongest warnings so far from senior Japanese government officials as they seek to stem the slide.
The currency fell as much 1 per cent to 144.19 per dollar on Wednesday in a third day of declines as a new wave of dollar strength ripped through Asia, putting pressure on a range of foreign exchange levels.
In his strongest remarks yet, chief Cabinet secretary Hirokazu Matsuno said he was concerned about the recent rapid, one-sided moves and that Japan would need to take action if they carried on.
“The government will continue to watch forex market moves with a high sense of urgency and take necessary responses if this sort of move continues,” he said.
Finance minister Shunichi Suzuki said he was watching the yen’s weakness with great interest, Kyodo News reported separately.
Despite the salvo of warnings, the comments proved insufficient to contain the yen’s continued slide.
The currency has slumped 20 per cent this year, and edged past its previous worst annual drawdown in 1979.
The renewed sell-off in Treasuries this month has widened the yield gap between the US and Japan, driving up the dollar and pushing the yen to a 24-year low.
The Japanese currency wasn’t the only one in the firing line on Wednesday, with the greenback stronger against all Group-of-10 peer currencies, as well as Asian counterparts from the yuan to the won.
The Bloomberg Dollar Spot Index extended a record high for the gauge.
The dollar-yen’s surge past the 144 level for the first time since 1998 will mount pressure on Bank of Japan Governor Haruhiko Kuroda’s defiance of a global shift towards rate increases, and the strength of Prime Minister Fumio Kishida’s support for his stance.
“The MoF [Ministry of Finance] and the BoJ [Bank of Japan] probably believe the current phase is clearly the dollar’s strength, and not the yen’s issue,” said Mari Iwashita, chief market economist at Daiwa Securities.
“That means there, unfortunately, is no sense of urgency about intervention or the need for the BoJ to tweak policy.”
In June, Japanese officials said they would take action if necessary, without specifying what that would be, after a three-party meeting held between the Ministry of Finance, the central bank and the Financial Services Agency.
Japan last intervened to prop up the currency in 1998, at around the same time much of Asia was being buffeted by a regional financial crisis.
Mr Kuroda has repeatedly said that foreign exchange policy is the remit of the finance ministry, not the BoJ, while standing his ground on keeping rock-bottom interest rates to support the economy and generate a more stable form of inflation.
He has insisted that a policy tweak to turn the currency tide would be largely futile anyway.
“I think Kuroda is right in that a small rate hike by the BoJ won’t stop the trend,” said Harumi Taguchi, principal economist at S&P Global Market Intelligence.
Beyond offering more help against rising prices driven by the yen, the options are also limited for the government, she said.
“Japan can only intervene unilaterally in foreign exchange, which won’t reverse the trend beyond a one-off shock.”
In the bond market on Wednesday, the BoJ said it would boost scheduled debt purchases as the intensifying Treasuries sell-off also put upward pressure on yields.
The move came as Japan’s benchmark 10-year yield approached the 0.25 per cent upper limit of the BoJ’s tolerated trading band.
In the options market, bets on further yen weakness are growing. One-year risk-reversals for the dollar-yen — a gauge of expected direction for the currency pair over that time frame — have hit the highest since 2015, according to data compiled by Bloomberg.
“So long as US bond yields are rising, which they are right now, and if the BoJ is trying to maintain this 25 basis points target on the 10-year JGB, the yen’s going to keep going down,” Chris Wood, global head of equity strategy at Jefferies, said on Bloomberg TV.
“The fundamental cause of the collapse of the yen this year is the stubborn commitment by the BoJ governor to this yield-curve control policy,” he said.
FA Cup quarter-final draw
The matches will be played across the weekend of 21 and 22 March
Sheffield United v Arsenal
Newcastle v Manchester City
Norwich v Derby/Manchester United
Leicester City v Chelsea
Results
1. Lewis Hamilton (Mercedes) 1hr 32mins 03.897sec
2. Max Verstappen (Red Bull-Honda) at 0.745s
3. Valtteri Bottas (Mercedes) 37.383s
4. Lando Norris (McLaren) 46.466s
5.Sergio Perez (Red Bull-Honda) 52.047s
6. Charles Leclerc (Ferrari) 59.090s
7. Daniel Ricciardo (McLaren) 1:06.004
8. Carlos Sainz Jr (Ferrari) 1:07.100
9. Yuki Tsunoda (AlphaTauri-Honda) 1:25.692
10. Lance Stroll (Aston Martin-Mercedes) 1:26.713,
HAJJAN
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RESULT
Argentina 0 Croatia 3
Croatia: Rebic (53'), Modric (80'), Rakitic (90' 1)
Concrete and Gold
Foo Fighters
RCA records
MATCH INFO
Watford 2 (Sarr 50', Deeney 54' pen)
Manchester United 0
UAE currency: the story behind the money in your pockets
Tips for newlyweds to better manage finances
All couples are unique and have to create a financial blueprint that is most suitable for their relationship, says Vijay Valecha, chief investment officer at Century Financial. He offers his top five tips for couples to better manage their finances.
Discuss your assets and debts: When married, it’s important to understand each other’s personal financial situation. It’s necessary to know upfront what each party brings to the table, as debts and assets affect spending habits and joint loan qualifications. Discussing all aspects of their finances as a couple prevents anyone from being blindsided later.
Decide on the financial/saving goals: Spouses should independently list their top goals and share their lists with one another to shape a joint plan. Writing down clear goals will help them determine how much to save each month, how much to put aside for short-term goals, and how they will reach their long-term financial goals.
Set a budget: A budget can keep the couple be mindful of their income and expenses. With a monthly budget, couples will know exactly how much they can spend in a category each month, how much they have to work with and what spending areas need to be evaluated.
Decide who manages what: When it comes to handling finances, it’s a good idea to decide who manages what. For example, one person might take on the day-to-day bills, while the other tackles long-term investments and retirement plans.
Money date nights: Talking about money should be a healthy, ongoing conversation and couples should not wait for something to go wrong. They should set time aside every month to talk about future financial decisions and see the progress they’ve made together towards accomplishing their goals.
The years Ramadan fell in May
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The years Ramadan fell in May
Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
ENGLAND SQUAD
Goalkeepers: Jack Butland, Jordan Pickford, Nick Pope
Defenders: John Stones, Harry Maguire, Phil Jones, Kyle Walker, Kieran Trippier, Gary Cahill, Ashley Young, Danny Rose, Trent Alexander-Arnold
Midfielders: Eric Dier, Jordan Henderson, Dele Alli, Jesse Lingard, Raheem Sterling, Ruben Loftus-Cheek, Fabian Delph
Forwards: Harry Kane, Jamie Vardy, Marcus Rashford, Danny Welbeck
Engine: 80 kWh four-wheel-drive
Transmission: eight-speed automatic
Power: 402bhp
Torque: 760Nm
Price: From Dh280,000
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Mohammed bin Zayed Majlis
Zayed Sustainability Prize
PROFILE BOX
Company name: Overwrite.ai
Founder: Ayman Alashkar
Started: Established in 2020
Based: Dubai International Financial Centre, Dubai
Sector: PropTech
Initial investment: Self-funded by founder
Funding stage: Seed funding, in talks with angel investors
Killing of Qassem Suleimani
Mohammed bin Zayed Majlis
UAE squad
Esha Oza (captain), Al Maseera Jahangir, Emily Thomas, Heena Hotchandani, Indhuja Nandakumar, Katie Thompson, Lavanya Keny, Mehak Thakur, Michelle Botha, Rinitha Rajith, Samaira Dharnidharka, Siya Gokhale, Sashikala Silva, Suraksha Kotte, Theertha Satish (wicketkeeper) Udeni Kuruppuarachchige, Vaishnave Mahesh.
UAE tour of Zimbabwe
All matches in Bulawayo
Friday, Sept 26 – First ODI
Sunday, Sept 28 – Second ODI
Tuesday, Sept 30 – Third ODI
Thursday, Oct 2 – Fourth ODI
Sunday, Oct 5 – First T20I
Monday, Oct 6 – Second T20I
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
SERIE A FIXTURES
Saturday Spezia v Lazio (6pm), Juventus v Torino (9pm), Inter Milan v Bologna (7.45pm)
Sunday Verona v Cagliari (3.30pm), Parma v Benevento, AS Roma v Sassuolo, Udinese v Atalanta (all 6pm), Crotone v Napoli (9pm), Sampdoria v AC Milan (11.45pm)
Monday Fiorentina v Genoa (11.45pm)
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Killing of Qassem Suleimani
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How to increase your savings
- Have a plan for your savings.
- Decide on your emergency fund target and once that's achieved, assign your savings to another financial goal such as saving for a house or investing for retirement.
- Decide on a financial goal that is important to you and put your savings to work for you.
- It's important to have a purpose for your savings as it helps to keep you motivated to continue while also reducing the temptation to spend your savings.
- Carol Glynn, founder of Conscious Finance Coaching
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
Killing of Qassem Suleimani
The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
Off-roading in the UAE: How to checklist
Pathaan
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When is VAR used?
• Goals
• Penalty decisions
• Direct red-card incidents
• Mistaken identity
The candidates
Dr Ayham Ammora, scientist and business executive
Ali Azeem, business leader
Tony Booth, professor of education
Lord Browne, former BP chief executive
Dr Mohamed El-Erian, economist
Professor Wyn Evans, astrophysicist
Dr Mark Mann, scientist
Gina MIller, anti-Brexit campaigner
Lord Smith, former Cabinet minister
Sandi Toksvig, broadcaster
Company profile
Company name: Suraasa
Started: 2018
Founders: Rishabh Khanna, Ankit Khanna and Sahil Makker
Based: India, UAE and the UK
Industry: EdTech
Initial investment: More than $200,000 in seed funding
