'Yen Weakening Accelerates' Dollar-Yen Exchange Rate Surpasses 125 Yen... Highest in 6 Years and 10 Months

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Due to concerns over the aggressive tightening monetary policy in the United States, the value of the Japanese yen, considered a safe-haven asset, has fallen to its lowest level since June 2015.

According to Bloomberg on the 11th, the dollar-yen exchange rate surpassed 125.4 yen during the trading session. This is an increase of more than 0.7% compared to the previous trading day. This marks the highest level in 6 years and 10 months since June 2015.

At the same time, the dollar index, which reflects the value of the dollar against six major currencies, exceeded the 100 mark for the first time in over two years since May 2020.

The Japanese Nihon Keizai Shimbun analyzed that concerns over the possibility of aggressive tightening by the U.S. Federal Reserve (Fed) are increasing pressure on the dollar's value to rise. Expectations of an expanding Japanese trade deficit due to rising commodity prices are also accelerating the yen's depreciation.

Some predict that the yen's value could fall to around 150 yen per dollar for the first time since 1990.

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