NY market Yen market price has fallen below 112 yen per dollar for the first time in 10 months

NY market Yen rate remains at the weak yen level of 112 yen per dollar for the first time in 10 months February 21 6:48

On the 20th, the New York foreign exchange market continued the trend of the London market and remained weak for the first time in 10 months, at the yen level of 112 yen per dollar. With the yen depreciating rapidly by more than two yen in two days, market officials believe that concerns about the impact of the spread of the new coronavirus on the Japanese economy will be in the background.

On the 20th, the New York foreign exchange market on the 20th of the London market continued to follow the trend of the yen depreciation level of 1 yen = 112 yen level for the first time in 10 months since last April, and has been moving around 112 yen level.

Behind the weak yen is the concern that the spread of the new coronavirus could have a serious impact on the Japanese economy.

Furthermore, the decline in GDP and gross domestic product during the three months to December last year was worse than expected, and the US economic indicators released earlier this week were brisk throughout the US, which marked the contrast between the US and Japanese economies. The move to buy dollars and sell yen has intensified.

A market official said, "When something happened, the yen, which was also called a" safe asset, "was bought, but it is possible that this perception has changed drastically. The yen will continue to weaken for the time being." And talk.

Regarding the rapid depreciation of the yen, Mr. Tsuyoshi Shimomura, the head of the New York Exchange Group at SMBC, pointed out that the yen could depreciate to around 115 yen per dollar over the next month, The depreciation of the yen indicates that the downside of the weak Japanese economy cannot be ignored.

Regarding the rapid depreciation of the yen, Mr. Shimomura commented, "Japan's GDP and gross domestic product have declined significantly, and the spread of the new coronavirus has made the outlook uncertain. In contrast, the U.S. economy was conscious of the strength of the US economy, and the dollar strengthened and depreciated against the yen. "

Until now, in the foreign exchange market, the yen has tended to be bought as a "safe asset" in the event of an uncertain future, but Mr. Shimomura believes that this perception may have changed.

"I think there is enough room for the yen to depreciate to around $ 115 per dollar over the next month," he said.

Regarding the effects and impacts of the weaker yen on the Japanese economy, Shimomura said, "I think it is not only an advantage. For Japanese export companies, the weaker yen will be profitable, but to a lesser extent. However, the rise in import prices due to the weaker yen is negative for consumption, and it has been pointed out that personal consumption is weakening, so a weak yen may have an unexpected downside risk. "