Heavy fall in Japan’s currency Yen, reaching its lowest level in 34 years

Tokyo (Uttam Hindu News): Japan There was a huge decline in the currency yen on Wednesday. Due to this, it has reached its weakest level against the dollar since 1990. In view of this decline, a meeting of Japan’s top financial officials was held. The rapidly falling currency was discussed in the meeting and possible interventions were indicated to stabilize it. The US dollar has reached a high of 151.975 yen. This aggressive bounce makes the dollar its strongest against the yen in more than 30 years.

Heavy fall in japans currency : emergency After the meeting, Japan’s Chief Currency Diplomat Masato Kanda stressed his readiness to take action against any disorderly fluctuations in the foreign exchange market. This is similar to the warnings issued before their intervention to defend the Yen in 2022. The Bank of Japan, the Finance Ministry and the Financial Services Agency of Japan held a meeting in Tokyo on Wednesday evening. Top currency diplomat Masato Kanda then said he would not rule out any action to respond to disorderly foreign exchange moves. Japanese authorities had intervened to save the yen, which had reached 151.94 against the dollar in 2022. Finance Minister Shunichi Suzuki used the same words on Wednesday as before that intervention. He warned that he would take decisive action to prevent a sharp decline in the Japanese currency.

“They are, to a certain extent, swimming against the tide here,” Bipin Rai, head of global foreign exchange strategy at CIBC Capital Markets in Toronto, was quoted as saying by Reuters. Intervention helps in the near term, but it is not a long-term solution. The yen’s decline of more than 7% this year has been driven by the widening gap between US and Japanese bond yields. The Bank of Japan’s recent small interest rate hike has done little to narrow the gap.