The relationship between JPY intervention and DXY stems from the interconnectedness of global currency markets.
DXY measures the value of the US dollar against a basket of major currencies, including the yen. When there's an intervention in the yen, such as the Bank of Japan or the Japanese government stepping in and in this case to strengthen the yen, they will be SELLING USD and BUYING JPY.
if Japan sells a significant portion of its US bond holdings, it might convert the proceeds back into yen, increasing the supply of US dollars in the market and potentially weakening the dollar relative to the yen and other currencies. This can lower the DXY value.
Ken Chigbo
DXY DOWNSIDE EXPLAINED💵📉
The relationship between JPY intervention and DXY stems from the interconnectedness of global currency markets.
DXY measures the value of the US dollar against a basket of major currencies, including the yen. When there's an intervention in the yen, such as the Bank of Japan or the Japanese government stepping in and in this case to strengthen the yen, they will be SELLING USD and BUYING JPY.
if Japan sells a significant portion of its US bond holdings, it might convert the proceeds back into yen, increasing the supply of US dollars in the market and potentially weakening the dollar relative to the yen and other currencies. This can lower the DXY value.
1 year ago | [YT] | 4