Wednesday, July 17, 2024

The dollar has fallen and the yen is stuck near a 3-decade low

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The yen fell to a three-decade low against the dollar on Tuesday as the Bank of Japan’s ultra-loose monetary policy continued to clash with expectations of longer-term interest rates elsewhere.

According to Reuters, the Japanese currency hit a 15-year low of 162.38 yen against the euro in early Asian trade, and it hit a nearly three-month low of 186.25 yen against the British pound. pound.

Against the dollar, the yen was at 151.70 per dollar in recent trades, close to a one-year low of 151.92 recorded on Monday. Any decline for the yen from last year’s low of 151.94 to the dollar would mark a new record low in 33 years.

In September last year, Japanese authorities intervened in the currency market to support the yen for the first time since 1998, when the Bank of Japan’s decision to maintain ultra-loose monetary policy led to the yen falling to 145 to the dollar.

The yen intervened again in October 2022 after falling to a 32-year low of 151.94 to the dollar.

Outside Asia, traders await US inflation data due later on Tuesday, which will provide more clarity on whether the Federal Reserve will need to raise interest rates further to curb inflation.

In recent days, Bank President Jerome Powell and his monetary policymaking team have contradicted market expectations that the US Federal Reserve has ended its tight cycle of rate hikes after keeping interest rates steady at the last monetary policy meeting.

Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

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