Japanese Yen Hits 11-Month Low Against The US Dollar
The yen weakened toward 149 per dollar, as the dollar hit an 11-month high against the Japanese currency and an almost 10-month high against a basket of currencies, as reported by Reuters.
An announcement by the Bank of Japan (BOJ) last Friday to maintain its ultra-low interest rate and continue its support towards the Japanese economy to reach a sustainable inflation level of 2%, also played a role in the yen’s weak performance.
BoJ Governor Kazuo Ueda told Esther Reichet, FX analyst at Commerzbank, that there was “no sign yet of stable inflation on a sustainable basis so that the BoJ will patiently continue with monetary easing under the current framework” and that it was “a clear dampener for the yen.”
This marks the lowest level for the yen since November 2022, when it hit 150 and the Japanese government had to intervene for the first time in 24 years by buying yen and selling dollars.
The proximity to another 150 has put market watchers and investors on alert as it could spur another forex intervention.
While the yen continues to struggle, the dollar’s hawkish rate outlook from the Federal Reserve sent U.S. Treasury yields higher and boosted the demand for the greenback, which led to the dollar index hitting 106.10, the highest since November 30th of last year.