**Japanese yen counterattacks! Breaking through the 140 mark, becoming the star of G10 currencies✨**
BlockBeats news, on September 16, the yen broke through the key psychological level of 140 against the US dollar, the first time since July 2023. The breakthrough continued the rally since hitting a near 38-year low in July. The yen became the best performing G10 currency this quarter, up 15%. The main reason behind this is that investors expect the interest rate gap between the United States and Japan to narrow further.
The Fed's rate cut this week seems to be a foregone conclusion, the only question is the extent of the cut. The market generally expects the Fed to cut interest rates by 50 basis points instead of 25 basis points. The Bank of Japan is expected to remain unchanged on Friday after raising interest rates twice this year.
Gareth Berry, a strategist at Macquarie Group in Singapore, said that "it is mainly the Fed's countdown and the risk that they may cut interest rates by 50 basis points instead of 25 basis points this week" that supports the yen. "Even if expectations for Fed easing remain unchanged, the passage of time alone will drive USD/JPY lower."
Since hitting a low of 161.95 against the dollar on July 3, the yen's fortunes have changed dramatically. Japan has intervened in the market several times before to boost the yen, but now the yen has risen too fast, affecting the prospects of exporters and, in turn, Japanese stocks.
For investors in the blockchain and cryptocurrency markets, this news may bring some revelations. First, the strength of the yen may affect the liquidity of global financial markets, and in turn affect the volatility of the cryptocurrency market. Second, the Fed's expectations of rate cuts may also have an indirect impact on crypto assets such as Bitcoin, because rate cuts usually lead to a depreciation of the US dollar, thereby increasing the attractiveness of safe-haven assets.
In general, the strong performance of the yen has brought new variables to the global financial market, and investors need to pay close attention to the next policy trends and market reactions.
Friends, what do you think of this big counterattack of the yen? Welcome to share your views and insights in the comment area! 💬
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