The yen-dollar exchange rate exceeded 155 yen… Another record low yen in 34 years.

The yen-versus-dollar exchange rate has surpassed the psychological support level of 155 yen per dollar.

On the 25th, the exchange rate of the yen against the dollar rose to 155.73 yen in the Tokyo foreign exchange market, hitting the highest level in 34 years (yen weakness) since June 1990. The day before in the London foreign exchange market, the exchange rate of the yen against the dollar rose to 155.17 yen during the day, and even after exceeding the 155 yen per dollar level, the yen seemed to be struggling.

On the 17th, the finance ministers of Korea, the United States, and Japan began a de facto joint verbal intervention, expressing concerns with one voice about the rapid devaluation of the yen, but the yen’s weakness shows no signs of stopping. On the 24th, Japanese Finance Minister Shunichi Suzuki hinted at the possibility of intervention in the foreign exchange market by saying, “We are watching with high tension and will respond appropriately,” but it appears that this weak move is not working.

It is expected that the Bank of Japan will not intervene in the market until the 26th, when it decides on this month’s base interest rate, and the rise of speculative forces is also seen as a factor encouraging the weakening of the yen. The yen-to-dollar exchange rate was in the 140 yen range until the beginning of this year, but is rising rapidly due to disappointment that the Bank of Japan will delay further interest rate hikes and expectations of an interest rate cut in the United States retreating. Junya Tanase, a foreign exchange strategist at JP Morgan and former Japanese Ministry of Finance, predicted in the Nihon Keizai Shimbun, “(The value of the yen) could fall to 160 yen per dollar depending on the U.S. Federal Reserve’s financial policy.”

In a recent Bloomberg survey, 54 market experts unanimously expected the Bank of Japan to freeze interest rates this month. Regarding the timing of the interest rate increase, the possibility of an interest rate increase in October was the highest at 41%, followed by July (19%) and September (17%).