Japanese Yen Hits 34-Year Low Against US Dollar
March 27, 2024
Currency markets saw the Japanese yen fall to its lowest point against the dollar in more than three decades on Wednesday.
The drop raised speculation that authorities could intervene in market trading to prop up the currency.
What’s happening with the yen?
The yen fell to 151.97 against the dollar – the lowest point since 1990 – before rising slightly. The dollar last fell at 151.19.
Over the past two years, the yen has weakened significantly, from around 115 against the dollar, before Russia’s invasion of Ukraine.
A weaker yen makes Japan’s exports cheaper. However, it also increases import costs and energy prices for consumers in the world’s fourth-largest economy.
In a sign of concern about the need to strengthen the currency, the Bank of Japan, the Ministry of Finance and the Financial Services Agency of Japan held a meeting at the end of Tokyo business hours.
Japanese Finance Minister Shunichi Suzuki previously said authorities could take “decisive measures” against the yen’s weakness.
“We are now watching market movements with a great sense of urgency,” he told reporters.
The government could intervene directly in the foreign exchange market, purchasing large quantities of yen and generally selling dollars for Japanese currency.
The value of the Japanese yen has already fallen more than 7% this year against the dollar.
Meanwhile, the dollar is on track for solid quarterly gains, after investors tempered their expectations for big interest rate cuts in light of strong economic data and reluctance from central bankers.
More to come…
rc/wmr (AFP, Reuters)
Source: DW
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.