After 32 Years Since the Bubble Economy... Yen-Dollar Exchange Rate Surpasses 150 Yen

Despite US Rate Hikes, Japan Maintains Financial Easing

[Image source=Yonhap News]

[Asia Economy Reporter Kim Pyeonghwa] Despite continued interest rate hikes in the United States, the yen-dollar exchange rate surpassed 150 yen as Japan maintained its monetary easing stance. Japan has stated it will continue its monetary easing policy but left open the possibility of market intervention if rapid fluctuations occur.

According to Japan's Kyodo News, as of 4:42 PM on the 20th, the value of the yen against the dollar exceeded 150 yen. The psychological resistance level of 150 yen was broken. It is the first time in 32 years since August 1990, during the late bubble economy period, that the yen-dollar exchange rate has surpassed 150 yen per dollar.

Recently, the yen has shown a rapid decline. On the 22nd of last month, when the yen-dollar exchange rate reached 145 yen, Japanese foreign exchange authorities intervened by purchasing yen, but they failed to stop the yen's weakness. The market evaluated that this phenomenon intensified as the Japanese government pursued large-scale monetary easing policies despite the interest rate gap between Japan and the U.S. caused by the U.S.'s successive rate hikes.

Japan still intends to maintain its monetary easing policy. According to the Nihon Keizai Shimbun on the 19th (local time), Haruhiko Kuroda, Governor of the Bank of Japan (BOJ), said, "The recent rapid and one-sided depreciation of the yen is negative for the economy and undesirable," but he forecasted that monetary easing would continue. However, the Japanese government hinted at the possibility of devising measures such as market intervention if excessive exchange rate fluctuations occur.

Meanwhile, due to the U.S. interest rate hikes causing a plunge in government bond prices and soaring yields, Japan's holdings of U.S. Treasury securities have dropped to the lowest level in three years. On the 18th (local time), U.S. Bloomberg News reported that the value of U.S. Treasury securities held by Japanese public and private investors was $1.2 trillion as of August, down $34.5 billion from the previous month.

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