Against the US dollar, the Japanese yen fell to its lowest level in 32 years as official data revealed that American prices increased more quickly than anticipated.
Before regaining some momentum, the yen sank to 147.66 against the US dollar. Last month, Japan took an unprecedented step and spent about $20 billion to bolster the nation’s struggling currency.
Japanese Finance Minister Shunici Suzuki said the government will take the “appropriate action” against currency fluctuations.
“We cannot accept excessive currency market swings fueled by speculative activity. We are keeping a close eye on currency movements with great urgency, “Suzuki said to the media.
Japan meddled in the world currency market last month to bolster the yen.
The Japanese government interfered in the currency market for the first time since 1998 after the yen hit its lowest level versus the dollar in 24 years.
Analysts have cautioned that, as long as Japanese interest rates stay far lower than their American equivalents, such actions will not have a meaningful influence.
The Japanese currency has been increasingly pressure in recent months, mainly due to the very different approach that the Bank of Japan has followed compared to the American Federal Reserve.
Consumer prices in the United States grew more than anticipated last month, according to official numbers released on Thursday, indicating that the struggle against inflation in the world’s largest economy is still ongoing.
The rate of price growth, or inflation, was 8. 2% in the 12 months ending in September, down from 8. 3% in August.
Consumer price increases in the United States are being closely watched since attempts by the Federal Reserve to reduce inflation have increased both the dollar’s worth and the cost of borrowing internationally.
To offset rising costs, the US Central Bank sharply increased interest rates, making the currency more appealing to investors. The Bank of Japan, in contrast, maintained exceptionally low interest rates.
The pound and the euro, two of the world’s largest currencies, are impacted by the strength of the dollar on the international financial markets.
from the BBC.
The Japanese yen fell to its worst point in 32 years.
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