JPY-USD Exchange Rate Hits 135 Yen "Touch"... "Highest in Over 20 Years"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] The Japanese yen exchange rate touched 135 yen per dollar on the morning of the 13th.

According to Bloomberg News, the dollar-yen exchange rate reaching 135 yen is the highest level in 20 years and 4 months since February 2002. The yen's value has hit its lowest point in over 20 years for consecutive days, continuing its downward trend and falling nearly 15% since the beginning of this year.

While major central banks such as the U.S. Federal Reserve (Fed), European Central Bank (ECB), and Bank of England (BOE) have successively declared their intentions to implement monetary tightening policies, the Bank of Japan (BOJ) is maintaining an accommodative monetary policy, which is driving down the yen's value.

In particular, the U.S. Consumer Price Index (CPI) for May, announced on the 10th (local time), rose by 8.6%, the highest in 41 years, raising concerns about Fed tightening, which appears to have also affected the yen's value.

A market official in Japan told NHK broadcast, "Due to the difference in financial policy directions between Japan and the U.S., the yen is likely to continue being sold easily, but since the government and BOJ held an emergency meeting last weekend, investors are focusing on how they will respond going forward."

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