Yen hits lowest level since 1990 as U.S. dollar approaches 155 mark

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23rd April 2024 – (Tokyo) The Japanese yen tumbled to its weakest position against the dollar since June 1990 on Monday, as investors closely monitored potential moves by Japanese authorities to stabilize the currency. This significant depreciation follows a series of robust U.S. inflation reports that bolstered the dollar to its highest level in five months, diminishing expectations of an imminent Federal Reserve rate cut.

Amidst the yen’s continued decline, speculation about possible currency intervention has intensified. Japanese Finance Minister Shunichi Suzuki, along with other officials, has indicated that the government is vigilantly observing currency fluctuations and stands ready to act if necessary.

The strength of the dollar was a focal point at the recent International Monetary Fund/World Bank spring meetings in Washington. In a notable development, the United States, Japan, and South Korea issued a joint statement addressing the currency issue, underscoring the global repercussions of these monetary dynamics.

After the G20 finance leaders’ gathering, Bank of Japan Governor Kazuo Ueda hinted that the central bank might consider raising interest rates to counteract inflationary pressures caused by the weakening yen. This statement highlights the complex challenges faced by Japanese policymakers in managing the economic implications of a depreciating currency.

As of the latest trading session, the dollar had edged up by 0.13% to 154.82 yen, marking a significant milestone not seen since the early ’90s.