Japanese Yen Surpasses 135 Yen per Dollar, Highest in 24 Years... Government "Closely Monitoring" (Comprehensive)

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] The Japanese yen exchange rate surpassed 135 yen per dollar on the afternoon of the 13th, marking the highest level in 24 years since 1998.

According to Bloomberg News and NHK Broadcasting, the dollar-yen exchange rate touched 135 yen in the morning, fluctuating around the 134 yen level before exceeding 135 yen in the afternoon. This is the highest level since October 1998. The yen's value has been hitting its lowest point in over 20 years consecutively, 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, "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 closely watching how they will respond going forward."

Following the sharp rise in the exchange rate that morning, Hirokazu Matsuno, Chief Cabinet Secretary and spokesperson for the Japanese government, said, "It is important for the exchange rate to move stably, but we are concerned about the rapid depreciation of the yen in the recent foreign exchange market," adding, "The government will closely cooperate with the BOJ and continue to carefully monitor the trends in the foreign exchange market as well as the impact on the economy and prices."

He continued, "Regarding exchange rate policy, based on the consensus approach agreed upon by the Group of Seven (G7) that excessive fluctuations or disorderly movements negatively affect economic and financial stability, we intend to maintain close communication with monetary authorities of other countries and take appropriate measures if necessary."

This content was produced with the assistance of AI translation services.