Yen depreciation in the 126 yen range for the first time in about 20 years The market is paying attention to the appearance of the government and the Bank of Japan

The yen exchange rate fell to the 126 yen level per dollar for the first time in about 20 years on the 13th.

As raw material prices soar, there are concerns from the business community that the depreciation of the yen is overkill due to concerns that it will lead to corporate profits and pressure on households, and the government and the Bank of Japan are paying close attention to the market.

In the foreign exchange market, the yen selling and buying dollars became stronger on the 13th, and the yen exchange rate fell to the 126 yen level per dollar, the lowest level in 19 years and 11 months since May 2002.

Behind the rapid depreciation of the yen, which has fallen by more than 10 yen in the past month and a half, is the difference in the direction of monetary policy between the United States and Japan.

The United States hastened to tighten monetary policy to curb inflation, and interest rate hikes are expected to accelerate, while the Bank of Japan has shown its willingness to continue strong monetary easing, saying that Japan needs to support the economy recovering from the corona disaster. , Suppressing the rise in interest rates.

These differences are expected to widen the interest rate differential between Japan and the United States, leading to a move to sell the yen and buy the dollar, which is expected to yield higher yields.

Although the depreciation of the yen has the advantage of boosting the profits of exporting companies, it has the disadvantage of further raising the cost of importing raw materials such as soaring energy, which puts pressure on corporate profits and households.

At the press conference on the 12th, Keizai Doyukai's secretary-general Sakurada stated that the current level of yen depreciation is too high, and there are voices from the business community concerned about the disadvantages of yen depreciation.

Under these circumstances, Minister of Finance Suzuki said on the 13th, "Stability of exchange rates is important. I think that sudden changes are a serious problem. The government is also tense and pays close attention to exchange rate trends. I want to go. "

There is a view that if monetary easing continues as it is, the yen will depreciate further, so the market is paying attention to how the government and the Bank of Japan will respond.