In the New York foreign exchange market on the 21st, the yen depreciated further, and the yen exchange rate temporarily dropped to the upper half of the 136 yen level per dollar, renewing the yen's depreciation level for the first time in about 24 years.
In the New York foreign exchange market on the 21st, the movement to sell the yen and buy the dollar became stronger, taking over the flow of the London market, and the yen depreciated gradually.
For this reason, the yen exchange rate temporarily dropped to the upper half of the 136 yen level per dollar, and since October 1998, the yen has renewed its high level for the first time in about 24 years.
Behind the rapid depreciation of the yen, the Fed, the central bank of the United States, raised interest rates by an unusual 0.75% last week, while long-term interest rates in the United States are on the rise. Since it has shown a stance of continuing large-scale monetary easing to curb the rise in long-term interest rates, there is a widespread view that interest rate differentials will widen due to the awareness of differences in the direction of monetary policy between Japan and the United States.
In addition, the yen exchange rate temporarily dropped against the euro until the euro was in the upper 143 yen range.
Market officials said, "The yen has fallen sharply against the dollar among the currencies of other countries in the world, and some are concerned about the impact of the recent rapid decline on the Japanese economy. For the time being, we haven't found any material that will stop the depreciation of the yen, and we continue to be unable to see how far the depreciation of the yen will progress. "