Japan's Yen hits the weakest point in over 3 decades against the dollar

Posted on May 3, 2024   |  

Japan's currency, the yen, saw a significant decline, briefly touching 160 yen per $1, echoing levels last seen in 1990.

During Monday's trading session, the yen swiftly reverted to 156 yen per dollar, showcasing the inherent volatility of the foreign exchange market.

Speculation arose about potential interventions by Japanese authorities to stabilize the yen's value amidst its fluctuations.

The Bank of Japan's strategy of maintaining low-interest rates to stimulate inflation has contributed to the prolonged weakness of the yen.

Despite recent interest rate stability, concerns linger over the yen's weakness, fueled by uncertainties surrounding future rate hikes.

Analysts anticipate ongoing pressure on the yen's value into the third quarter, influenced by factors including the Bank of Japan's monetary policies and global economic conditions.