The yen continues to weaken. In the foreign exchange market, the yen has fallen to the 160.80 yen range per dollar, hitting its lowest level in 37 and a half years.

On the 26th, in the New York foreign exchange market, the view that the interest rate differential between Japan and the US will not narrow anytime soon led to a growing trend of selling yen and buying dollars, causing the yen to fall to the 160.80 yen range per dollar, the lowest level in 37 and a half years since December 1986.

As market expectations grow stronger that the government and the Bank of Japan will intervene in the market to buy yen in order to prevent the yen from weakening, Finance Ministry Vice-Minister Kanda said the following yesterday:

Masato Kanda, Vice Minister of Finance, Ministry of Finance
“We have serious concerns about the recent rapid depreciation of the yen, and are closely monitoring market trends with a high level of vigilance. On that basis, we will take necessary measures against any excessive movements. We have been preparing (foreign currency intervention) for some time now.”

However, by repeating the same language as before and limiting intervention to “verbal intervention,” selling pressure on the yen continues in the market.