The value of the yen, which has been continuously falling, fell again to the lowest level in 34 years on the 25th.
The yen/dollar exchange rate rose to 155.73 yen per dollar in the Tokyo foreign exchange market during the day.
Even after surpassing the 155 yen level, which was considered a resistance level in some corners of the market, in the London foreign exchange market the night before, the yen’s weakness did not stop.
Yen. yunhap news
As the U.S. Federal Reserve’s (Fed) predictions of an early interest rate cut retreated and the interest rate difference between the U.S. and Japan became more prominent, the market continued to sell yen and buy dollars.
Finance Minister Shunichi Suzuki said at the Finance and Finance Committee of the House of Councilors (Senate) on this day, “There is no change whatsoever in our intention to respond appropriately,” and said, “I cannot say much at the current situation.”
However, the Nippon Keizai Shimbun (Nikkei) reported that market caution against government intervention is strong.
The yen/dollar exchange rate was around 140 yen per dollar as of January 2 of this year, but has shown a steep upward trend, and has recently been breaking the lowest level since June 1990.
Accordingly, some predict that the value of the yen may fall to around 160 yen per dollar depending on the international financial market environment.
Junya Tanase, a foreign exchange strategist who used to work at the Ministry of Finance and is currently working at JP Morgan Chase, told Nikkei, “Depending on the Federal Reserve’s financial policy, the price could fall to 160 yen (per dollar),” and whether the authorities would intervene in the market was “unspecified.” “The speed of exchange rate changes is more important than the level,” he said.
Meanwhile, the Japanese stock market also fell sharply on this day.
The Nikkei 225 average stock price (Nikkei index), a representative stock index, closed at 37,628, down 2.16% from the previous trading day’s closing price.
Nikkei reported that bearish sentiment spread when American company Meta released an earnings forecast that fell short of market expectations on the 24th (local time).
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