(27 March 2024 – Japan) The Japanese Yen has continued to weaken against the US Dollar despite a notable shift away from negative interest rate settings by the Bank of Japan (BOJ).
The BOJ, Finance Ministry and Japan's Financial Services Agency held an emergency meeting, reflecting the increasing level of urgency to stabilise the JPY after the currency slipped to a 34-year low against the greenback.
At one stage the Yen traded at 151.97, weaker than the 151.94 level at which Japanese authorities intervened in Q4 2022 to support the currency.
“It's not just a Yen story. It has a domino effect that causes downside risk to other currencies. Ripples from the Yen's decline are being felt elsewhere and a recent sharp drop in China's Yuan may be a policy response to protect the competitiveness of Chinese exports” stated NAB Senior FX Strategist, Rodrigo Catril.