The price of the Tokyo foreign exchange market on the 19th has dropped to the upper half of the 127 yen level per dollar.
Against the backdrop of widening interest rate differentials between Japan and the United States, there is a growing movement to buy dollars and sell yen.
Following the drop in the New York foreign exchange market on the 18th to the 127 yen level for the first time in about 20 years, the Tokyo market on the 19th also started trading at the 127 yen level.
Against the backdrop of the view that interest rate differentials will widen due to differences in the direction of monetary policy between Japan and the United States, the movement to buy dollars with higher yields and sell yen has intensified, and the yen will temporarily depreciate until the upper half of the 127 yen level per dollar. I proceeded.
A market official said, "The Minister of Finance Suzuki said that the rapid depreciation of the yen is considered to be a restraint, saying that it has a strong disadvantage in view of the current economic situation, but the market did not react much and the yen was sold after that. The dollar-buying movement continues to dominate. "