In the New York foreign exchange market on the 28th, long-term interest rates in the United States and Europe fell after the announcement of the purchase of British government bonds by the central bank of the United Kingdom. The market is trading at a level between 1 dollar = 144 yen.
In the bond market on the 28th, the central bank of the United Kingdom announced that it would temporarily purchase British government bonds, whose prices had fallen due to concerns about financial deterioration, in order to stabilize the market. Returned, European and American long-term interest rates fell.
In response to this, in the New York foreign exchange market, the sense of caution about the widening interest rate differential between Japan and the United States has eased, and the yen is being bought back, and the yen exchange rate is trading at the level of 144 yen to the dollar.
Until the announcement of the purchase of government bonds by the British central bank, the bond market sold US government bonds while British government bonds were sold, and the US long-term interest rate temporarily rose to the 4% level for the first time in about 12 and a half years. This led to a move to sell the yen and buy the dollar.
A market insider said, ``In addition to the decline in long-term interest rates in the United States, there is also a sense of caution about further market intervention by the government and the Bank of Japan, which has put a brake on the yen's depreciation for the time being.''