Yen at 37.5-Year Low Against Dollar, 1 USD = 160 Yen+

On the 26th, the yen exchange rate in the foreign exchange market, which recorded 1 dollar = 160 yen in the latter half for the first time since 1986, is maintaining the yen depreciation level of the 160 yen range on the 27th as well. (Yoshida Takashi, Economic Bureau Reporter) One market insider said, "In the absence of any particular material, the yen depreciation phenomenon can only be described as speculative." The yen exchange rate, which recorded the 160 yen range in the London market on the night of the 26th (Japan time), is showing a yen depreciation and dollar strengthening trend in the Tokyo market on the morning of the 27th as well. Finance Minister Suzuki cautioned the market once again on the morning of the 27th, stating that he is "maintaining a high level of vigilance." However, the yen is weakening against major currencies, including recording the highest level of yen depreciation against the euro since the creation of the euro in 1999, and voices are emerging that "the yen is depreciating." As the yen exchange rate exceeds 160 yen and reaches a historically low level, concerns about foreign exchange intervention by the government and the Bank of Japan are also growing, and nervous movements are expected to continue. TV Asahi

On the 26th, the foreign exchange market recorded 1 dollar = 160 yen in the latter half for the first time since 1986. This marks the Japanese yen reaching a historically low level in 37 and a half years, and market insiders are expressing concerns, pointing out that "in the absence of any particular material, the yen depreciation phenomenon can only be described as speculative."

Yen depreciation and dollar strengthening continued in the Tokyo market on the morning of the 27th, leading Finance Minister Suzuki to caution the market and state that he is "maintaining a high level of vigilance." However, the yen is weakening not only against the dollar but also against the euro, recording the highest level of yen depreciation since the creation of the euro in 1999. This indicates a weakening of the yen against major currencies, and voices are emerging that "the yen is depreciating."

As the yen exchange rate exceeds 160 yen and reaches a historically low level, concerns about foreign exchange intervention by the government and the Bank of Japan are also growing. Consequently, it is expected that the yen exchange rate will continue to experience nervous fluctuations in the future.

Analysis suggests that the difference between the Bank of Japan's policy of lowering interest rates and the US Federal Reserve's policy of raising interest rates is contributing to the deepening of the yen's depreciation. In addition, there are also indications that Japan's slowing economic growth is impacting the yen's depreciation.

The yen depreciation phenomenon is having a variety of impacts on the Japanese economy. While export businesses may see their export competitiveness strengthened due to the weaker yen, import businesses may face difficulties due to rising import prices. Consumers may also experience price increases due to the weaker yen, and the yen's depreciation could potentially discourage domestic investment in Japan.

The government and the Bank of Japan are implementing various policies to curb the yen depreciation phenomenon. However, preventing yen depreciation is not easy, and it is expected that the yen exchange rate will continue to experience volatility in the future.