Gold Wavers After Japan Intervention, Central Banks’ Rate Hikes
- Greenback earlier declined after Japan moved to strengthen yen
- Billion is down 8.6% this year amid central bank tightening
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Gold fluctuated after Japan intervened in the foreign exchange market and central banks around the world followed the Federal Reserve with further monetary policy tightening.
Japan’s Ministry of Finance moved to halt a slide of the yen against the dollar, the country’s top currency official Masato Kanda said Thursday. After the Fed’s third consecutive large-sized rate hike, central banks in Switzerland, Norway and Britain announced hikes of their own as officials rush to rein in rampant price increases. The greenback fell after Japan’s intervention before clawing back its losses, while bond yields climbed. Bullion usually has a negative correlation with the dollar and rates as it’s priced in the US currency and doesn’t pay any interest.