Updated April 23rd, 2024 at 06:58 IST

Japanese Yen hit its lowest level since the 1990s

This downward spiral for the yen comes on the heels of robust U.S. inflation data, which has propelled the dollar to its highest levels in five months.

Reported by: Business Desk
Yen slides | Image:Pexels
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Yen’s dip: The Japanese yen has dipped to its lowest point against the dollar since June 1990, causing ripples in financial markets and raising eyebrows over potential intervention from Japanese authorities.

This downward spiral for the yen comes on the heels of robust U.S. inflation data, which has propelled the dollar to its highest levels in five months. The prevailing sentiment suggests that the Federal Reserve is unlikely to pursue interest rate cuts anytime soon, further bolstering the dollar's strength.

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Concerns over the yen's depreciation have prompted Japanese Finance Minister Shunichi Suzuki and other policymakers to closely monitor currency fluctuations, pledging to take appropriate action as needed.

At the recent International Monetary Fund/World Bank spring meetings in Washington, the dominance of the strong dollar was palpable. In an unusual move, the United States, Japan, and South Korea issued a joint statement addressing currency concerns, underscoring the significance of the issue.

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Meanwhile, Bank of Japan Governor Kazuo Ueda hinted at the possibility of future interest rate hikes if the yen's decline contributes significantly to inflationary pressures, illustrating the complex challenges facing policymakers.

As of now, the dollar stands firm at 154.82 yen, marking its strongest position against the Japanese currency in over three decades.

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With Reuters Inputs

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Published April 23rd, 2024 at 06:58 IST