The devaluation of the yen continues on the exchange market, reaching its lowest level in 34 years against the dollar, on expectations of a continuation of the Bank of Japan's (BoJ) accommodative monetary policy, despite the recent rise in interest rates.
In trading in Tokyo the Japanese currency fell to 151.97 against the dollar.
The achievement of similar levels in October 2022 led the government to intervene with purchases of yen on the market, to interrupt the weakening phase of the currency.
Also in this case, the signals from the government were not long in coming, through communications from the Minister of Finance Shunichi Suzuki, who in a press briefing with the local media did not rule out "appropriate actions to prevent the excessive volatility present on the market, with a
sense of urgency."
In the same morning, a member of the BoJ board, Naoki Tamura, declared that for the moment the cost of short-term money will remain close to zero, despite the fact that last week the central institution took a step towards normalizing its policy monetary policy, decreeing the stop to negative interest rates for the first time in 8 years.
In this regard, according to investors, the yen will continue to discount the large interest rate differentials between Japan and the United States, given the divergent monetary policies pursued by the respective central banks.
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