Achi news desk-
The Japanese currency sinks to 160.17 per dollar, the lowest since April 1990.
The Japanese yen has fallen to a 34-year low against the US dollar.
The yen sank on Monday to 160.17 per dollar, the lowest since April 1990, prompting speculation that Japanese authorities would intervene to support the currency for the first time since late 2022.
The Yen has been on a sustained slide since early 2021 as the Bank of Japan (BOJ) has maintained very low interest rates, while the US Federal Reserve and other central banks have increased borrowing costs.
The downward spiral has continued in recent weeks despite the BOJ raising interest rates last month for the first time in 17 years, as expectations of US interest rate cuts dimmed amid above’ the target.
While a weak yen has helped Japanese exporters boost profits and put more money in the pockets of tourists visiting Japan, it has put pressure on household budgets by raising the prices of imported goods.
Japanese officials have repeatedly stated that they are prepared to step in to prevent sudden movements in the exchange rate, although authorities have refrained from intervening during the currency’s year-long slide.
On Friday, Japan’s central bank kept its benchmark rate unchanged at 0-0.1 percent.
BOJ Governor Kazuo Ueda said at a news conference that exchange rate volatility would only affect monetary policy if there was a significant impact on the economy.
“If yen movements have an impact on the economy and prices that are hard to ignore, it could be a reason to adjust policy,” Ueda said.
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