In the New York foreign exchange market on the 28th, the Bank of Japan clarified its policy to strongly suppress the rise in long-term interest rates, and the movement to sell the yen and buy the dollar became stronger, and the yen exchange rate temporarily reached the low 131 yen level. The price dropped and the yen depreciated for the first time in 20 years, renewing the dollar's high level.
In the New York foreign exchange market on the 28th, the yen depreciated and the dollar strengthened in the Tokyo and London markets after the Bank of Japan clarified its policy to strongly suppress the rise in long-term interest rates while maintaining large-scale monetary easing measures. Taking over the accelerated flow, the movement to sell yen and buy dollars has intensified.
As a result, the yen's exchange rate temporarily dropped to the low 131 yen level per dollar, and since April 2002, the yen has renewed its high level for the first time in 20 years.
The yen's depreciation is accelerating as the yen's market price has fallen by about 10 yen against the dollar in nearly a month since the end of March, when the price was around 121 yen per dollar.
While the depreciation of the yen will increase profits for Japanese exporters, it will also push up the prices of energy and foodstuffs that Japan relies on imports.
Market officials said, "I was reminded of the difference in the direction of monetary policy between the United States and Japan, which is rushing to tighten monetary policy to curb inflation. Not only the movement to sell yen but also the movement to buy dollars with expected yields are increasing. Therefore, it is difficult to predict how far the yen will weaken and the dollar will strengthen. "