The Japanese yen has plunged to its weakest level against the US dollar since June 1990, sparking concerns among investors and policymakers alike.
On Wednesday, the yen fell to 155.14 per dollar, marking a significant milestone not seen in over three decades. This sharp decline follows robust US inflation data, which has propelled the dollar to five-month highs and fueled expectations that the Federal Reserve may maintain higher interest rates for longer than anticipated.
Market participants are now closely watching for any indications of intervention by Japanese authorities to stabilize the currency. Japanese Finance Minister Shunichi Suzuki and other key policymakers have stated that they are monitoring currency movements carefully and are prepared to take necessary actions to support the yen if needed.
The weakening yen has wide-ranging implications for the global economy, impacting everything from international trade to investment flows. As the situation evolves, both local and international stakeholders remain alert to the potential for further currency fluctuations.
Reference(s):
cgtn.com
