Japanese yen hits 150-mark against US dollar, worst since August 1990
The Japanese yen continue to lose ground as it went past the 150-mark against the United States dollar on Thursday – the highest since 1990. It has been a tough time for the Japanese economy as the currency has weakened quite a bit and it has prompted an emergency Bank of Japan meeting.
The last time when the Yen breached the 160-mark was way back in 1986.
In the past few weeks, the Bank of Japan has maintained that they will not be following the example of most central banks around the world in increasing their interest rates in order to combat the inflation. But experts believe that the recent events can lead to a slight change in their stance.
Japanese Finance Minister Shunichi Suzuki expressed his concern regarding the situation and added that the government will take “appropriate steps against excess volatility.”
“Recent rapid and one-sided yen declines are undesirable. We absolutely cannot tolerate excessively volatile moves driven by speculative trading,” he told Reuters in an interview.
While the Bank of Japan did not raise the interest rates, the government has tried to strengthen the economy through various measures, but they have failed the stabilise the currency till now.
A major step taken by the government was to sell unlimited amount of bonds to the central bank which will allow the debt yields to remain static at 0.25 per cent. The Bank of Japan will also buy $666.98 million worth of government bonds with maturities between 10 and 20 years.