Yen Slides 20 Pct Year to Date against Dollar
Tokyo, Sept. 9 (Jiji Press)--The Japanese yen is by far underperforming compared with other major currencies against the dollar, sliding about 20 pct since the end of last year.
The yen is likely to remain under especially strong downward pressure against the dollar, which is strengthening versus currencies other than the Japanese unit as well since the U.S. Federal Reserve is moving to aggressively raise interest rates to tame inflation.
The dollar, which stood below 116 yen at the end of 2021, hit a fresh 24-year high of 144.99 yen in overseas trading Wednesday. Among other major currencies, the euro has dropped by 12 pct versus the dollar and the pound by nearly 15 pct.
Expectations for wider interest rate gaps between Japan and the United States have been prompting yen selling for dollars.
"While the Fed is tilting toward aggressive monetary tightening and many other central banks are following suit, Japan, where a massive monetary easing policy (by the Bank of Japan) remains in place, has been left behind," Teppei Ino, chief analyst of MUFG Bank, said.
[Copyright The Jiji Press, Ltd.]