Yen Hitting 150 per Dlr Now in Sight despite Intervention Fears
Tokyo, Oct. 16 (Jiji Press)--The yen remains on a downtrend despite fears of possible currency market intervention by Japanese authorities, and its fall past the 150 mark against the dollar has come in sight.
Reflecting widening interest rate gaps between Japan and the United States, the yen dived past 148.50 per dollar in overseas trading on Friday, hitting fresh 32-year lows.
The yen traded around 115 versus the dollar late last year, and it has weakened some 22 pct so far this year. If the Japanese currency hits 150, that would be the first time since August 1990.
The yen’s persistent weakness against the dollar is backed by high inflation in the United States. The U.S. consumer price index for September, released Thursday, rose faster than market expectations, reinforcing the view that the U.S. Federal Reserve will maintain its aggressive monetary tightening stance.
As the data highlighted the policy direction difference between the Fed and the Bank of Japan, which sticks to its easing policy, the yen slipped below the August 1998 low of 147.64 soon after the release of the data.
[Copyright The Jiji Press, Ltd.]