2024-04-12 11:29:37
The Japanese Ministry of Finance does not exclude the possibility of taking various measures in response to the depreciation of the national currency to its lowest level since June 1990 – 153 yen per dollar. The head of the department, Shunichi Suzuki, told reporters about this, Day.Az reports with reference to TASS.
“Exchange rates are determined by the market, reflecting economic fundamentals, and excessive fluctuations are not acceptable. We will continue to monitor market fluctuations. In case of excessive movements, we will respond accordingly, while not ruling out all possible options,” the finance minister said.
The rate on the morning of April 11 dropped to 153.16 yen per dollar. Now the rate has risen to 152.84. Observers say the yen’s weakening comes amid a persistent gap in interest rates with Western countries, despite the Bank of Japan‘s decision on March 19 to abandon its decades-long practice of negative interest rates.
In Japan, for a long period the rate was at the level of 0.1%, which, coupled with the extremely soft monetary policy of the Central Bank, was aimed at stimulating the economy and achieving the target inflation rate of 2%. Western countries have raised interest rates in recent years to combat excessive inflation, making investments in dollar- and euro-denominated assets more profitable than those denominated in yen.
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