On the 28th, the yen depreciated to the 125 yen level at one point, and the Tokyo market on the 29th is currently trading at the 123 yen level.
In the foreign exchange market, the yen has been depreciating recently, and on the evening of the 28th, yen selling and dollar buying intensified at a stretch, and the yen exchange rate temporarily hit 125.10 yen per dollar for the first time in about 6 years and 7 months. The yen has depreciated.
In the background, the Bank of Japan has decided to carry out a "continuous limit operation" to buy unlimited government bonds at a specified yield for three days from the 29th in order to curb the rise in long-term interest rates.
Investors are aware of the interest rate differential between Japan and the United States, where interest rates are low, and the movement to buy dollars with high interest rates and sell yen is accelerating.
The yen exchange rate was around 115 yen per dollar at the beginning of March, but the yen has depreciated by 10 yen in the last three weeks.
In general, the depreciation of the yen enhances export competitiveness for exporters, but on the
other hand, it also raises the price of imported goods, and there are voices concerned about the excessive depreciation of the yen.
Treasury Minister Suzuki "Watching to prevent a bad yen depreciation"
At a press conference after the Cabinet meeting on the 29th, Minister of Finance Suzuki said, "We should refrain from commenting on the recent depreciation of the yen in the foreign exchange market, as careless remarks should not affect the exchange rate." "The government must pay close attention to prevent the yen from depreciating badly," he said.
Regarding the indication that the BOJ's policy affected foreign exchange, Minister Suzuki said, "I hope that the BOJ will take responsibility for monetary policy."