With Japan’s interest rate frozen, the yen-dollar exchange rate exceeded 158 yen… for the first time in 34 years.

The yen soared to 158.33 yen per dollar in the New York foreign exchange market on the 27th. It has been 34 years since 1990 that the value of the yen fell to the 158 yen per dollar level.

On the 26th, the Bank of Japan decided to maintain the current base interest rate of 0-0.1% at its financial policy decision meeting. The Bank of Japan raised its base interest rate from -0.1% last month, ending its 17-year negative interest rate policy. However, at this meeting, which was held for the first time since then, there was no further interest rate increase. Immediately after the Bank of Japan’s announcement, the yen-dollar exchange rate in the Tokyo foreign currency market exceeded 156 yen. Afterwards, Bank of Japan Governor Kazuo Ueda said at a press conference, “The easing financial environment will continue for the time being,” and the exchange rate rose above 157 yen.

The yen-dollar exchange rate was around 140 yen at the beginning of this year. This year alone, its value against the dollar has fallen 11%. The background is that the United States has raised interest rates through aggressive tightening, while Japan is maintaining low interest rates. Governor Kazuo’s remarks in this situation are evaluated as accelerating the decline in the yen by adding weight to the observation that it is difficult for the Bank of Japan to raise interest rates early. However, given the rapid pace of recent yen depreciation, there is still a sense of wariness about Japanese authorities’ intervention in the market.