The major Japanese Nikkei index showed its second biggest drop in history on Friday, August 2. Prices fell below 36,000 points for the first time since October 1987. This is evidenced by trading data.
The indicator closed the trading session with a loss of 5.81% at 35,909.63 points. The decline was caused by news from the US, namely, weak data on the state of American industry for July. Investors fear that this could signal a slowdown in US GDP growth.
Meanwhile, the yen exchange rate strengthened against this background to 148.6-149.7 per dollar. A month ago, the Japanese national currency exchange rate reached The exchange rate is at 161 yen per dollar, the highest since the 1980s.
In July, Japanese authorities used Trillions of yen to support the exchange rate of the national currency. 5.5 trillion yen ($36.6 billion) was spent on foreign exchange interventions between June 27 and July 29.
Formerly Bank of Japan raised rate rose to its highest level since 2008.
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Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.