A dollar now costs 150 yen in Japan, the lowest level since 1990 for the Japanese yen.
The Bank of Japan will meet for two days next week, and officials have decided against raising interest rates to arrest the yen’s depreciation.
On Thursday, the Bank of Japan also disclosed its plans to purchase emergency bonds. The purchase of Japanese government bonds offered 100 billion yen (666.
98 million dollars) with maturities ranging from 10 to 20 years, and another section at 100 billion yen with a 5–10 year term.
The central bank has repeatedly pledged to purchase an unlimited amount of bonds at a fixed price in order to determine the returns of government bonds for a period of 10 years at 0. 25 % as part of its motivational procedures for the economy.
According to Reuters, Shonichi Suzuki, the minister of finance for Japan, promised that the government would “take adequate steps against excessive volatility.”
“The recent sharp depreciation of the Japanese yen is not desired,” he continued. We cannot under any circumstances accept the erratic movements caused by speculation trading.
When asked about the anxiety of the yen’s value against the US dollar, Richard Yitsja, the chief economist of ANZ, said he was “not worried.
“At this point, I don’t believe we are on the verge of destabilising the currency sector.
Officials stated that they had acted to safeguard the currency against further weakness shortly after the Bank of Japan’s recent decision to retain low interest rates to assist the nation’s sluggish economy last month.
This intervention pushed the yen briefly to 142 against the dollar, and the difference between the highest and lowest point during the same day was in its widest range since 2016.
The lowest decline in the value of the yen was seen in 1986, when the dollar was trading for 160 yen, in April 1990, when it was worth 159.8 yen.
The value of the dollar is 150 yen, the lowest level it has been since 1990.
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