How long will the record low yen continue? The yen continues to trade at the milestone of 160 yen to the dollar, and is in a historically low state.
In the New York market, the yen weakened to the 160.80 yen range against the dollar. It is currently trading at 160.44 yen against the dollar, and the yen continues to be vulnerable to selling.
The background to this is the interest rate differential between Japan and the United States. The American economy is strong, and interest rates are unlikely to fall anytime soon. Meanwhile, the market is seeing a growing view that the Bank of Japan is no longer planning to raise interest rates, and the trend of selling yen and buying dollars is intensifying.
The weakening of the yen has raised concerns about currency intervention in the market.
Minister of Finance Shunichi Suzuki
“We will analyze the background to this movement with a high level of vigilance and take the necessary measures as necessary.”
Minister Suzuki once again warned the market today, but the current yen exchange rate has returned to the level before the currency intervention two months ago.
Will they be able to intervene while the interest rate differential between Japan and the U.S., which is the cause of the yen’s depreciation, remains large? As the market tries to gauge the government and the Bank of Japan’s situation, nervous trading continues.
Source: Japanese