The yen fell 0.5% to a low of 138.10 per dollar. The reason is that traders have abandoned it in pursuit of higher US interest rates.
The Japanese yen has fallen to its lowest level in 24 years. The Financial Times reported this on Thursday, July 14th.
The report said the expected increase in the main rate gap between Japan and the United States has greatly reduced the value of the currency.
In particular, it fell 0.5% to a low of 138.10 per dollar during morning trading. This level has not been seen since September 1998.
The yen has set some of its lowest levels in recent weeks. The reason for this is that traders have abandoned it in pursuit of higher US interest rates. The media suggests that the US Federal Reserve this year will start acting more aggressively to fight rapid inflation.
The Central Bank of Japan has adhered to a loose monetary policy and only warned against “excessive volatility” in the yen price.
Inflation in Japan hit 2.5% in June above the bank’s range.
Recall that the IMF raised the weight of the dollar and the Chinese yuan when changing the currencies that make up its basket of special drawing rights (SDRs) – an international reserve asset.
It was previously reported that the US Federal Reserve raised the base rate by 50 basis points.
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.