The Fed's interest rate hike expectations have strengthened, and the yen has fallen below 140 against the dollar for the first time since 1998

　　The Paper reporter Chen Peizhen

　　The dollar strengthened after Federal Reserve Chairman Jerome Powell spoke "hawkishly" at the Jackson Hole annual meeting of global central banks last Friday, after the market dispelled the idea that the Fed would turn policy and cut interest rates next year.

At the same time, under the influence of the easing policy, the yen set off a new round of depreciation, and the exchange rate of the yen against the US dollar fell below the 140 mark for the first time since 1998.

　　On the evening of September 1, the US dollar index once exceeded 100 for the first time since June 2002.

The yen-dollar exchange rate fell below the key 140 mark for the first time in more than 20 years, at 139.958 as of press time.

　　Although Japan's Chief Cabinet Secretary Hiroshi Matsuno spoke on the yen exchange rate on Thursday, his speech did not reveal that the Japanese Ministry of Finance would take special measures to intervene.

"I don't want to see the rapid fluctuation of the yen exchange rate, and I am following the exchange rate trend with a high sense of urgency. It is very important to keep the exchange rate stable." Matsuno Hiroichi said.

　　JPMorgan strategists Benjamin Shatil and Nakamura Sasuke believe the yen is fast becoming the world's only zero-yielding currency.

After Jackson Hole, the Fed's hawkish rhetoric, the reduced risk of a US recession, and Kuroda's apparently unwavering dovish commitment should hijack USD/JPY.

　　Steven Englander, head of G-10 currency research at Standard Chartered Bank, said that in addition to direct intervention, a sustained rebound in the yen will require the Bank of Japan to implement a substantial rate hike, which will cause significant damage to the economy.

Stopping the yen from falling will require a change in interest rate policy from the Bank of Japan, which has long said keeping inflation on track is their goal.

The yen is undervalued at current levels.

The reason for the yen's weakness is artificially low interest rates, the question is how long they can hold out.