Yen Plunges to New 5-Year Low against Dollar

Economy Politics

Tokyo, March 14 (Jiji Press)--The yen plunged to hit a fresh five-year low against the dollar in Tokyo trading on Monday, as the U.S. Federal Reserve is expected to decide an interest rate hike this week.

The dollar stood at 117.83-83 yen at noon, up from 116.71-71 yen at 5 p.m. Friday.

The yen's weakness against the dollar reflected speculation of widening interest rate gaps between Japan and the United States, ahead of the U.S. central bank's policy-setting meeting for two days from Tuesday, market sources said.

"There now appears to be no major resistance line (for the dollar's ascent) until the Jan. 3, 2017, peak of 118.60 yen and the 2016 high of 118.66 yen," a currency broker said.

At a press conference Monday, Japanese Deputy Chief Cabinet Secretary Yoshihiko Isozaki said the government is closely watching foreign exchange movements and their impact on the Japanese economy. "Stable foreign exchange rates are important above all," he said.

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Jiji Press