The Yen Hits Its Lowest Value This Year... Yen/Dollar Returns to 145 Yen Range After 9 Months

The value of the Japanese yen hit its lowest point in nine months during intraday trading. On the 14th, the yen/dollar exchange rate rose to 145.22 yen per dollar in the Tokyo foreign exchange market, according to Kyodo News and others. This is the highest level since November of last year.

However, as the yen weakened further, concerns about government intervention in the exchange rate led to dollar selling to secure profits, causing the rate to fall back to the 144 yen range in the afternoon.

Kyodo News reported that this was due to expectations of further interest rate hikes in the United States, which led to an anticipated widening of the interest rate gap between the two countries, prompting a flow of selling yen and buying dollars.

On the 14th, Japanese yen displayed at the Hana Bank Counterfeit Response Center in Jung-gu, Seoul. Photo by Jinhyung Kang aymsdream@

On the 28th of last month, the Bank of Japan partially revised its monetary policy by effectively raising the upper limit of the 10-year government bond yield to 1% through unlimited purchases of government bonds in open market operations. However, this was insufficient to reverse the yen's weakening trend caused by the interest rate gap between the two countries.

When the yen/dollar exchange rate was in the 145 yen range last September, the Japanese government directly intervened in the market.

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