Yen Hits Yearly Low Value... Impact of Japan's Continued Monetary Easing Policy

On the 25th, the Yen-Dollar exchange rate rose to 148.6 Yen

The value of the yen hit a year-to-date low after the Bank of Japan decided to maintain its monetary easing policy.

According to foreign media including Kyodo News, the yen-dollar exchange rate rose to about 148.6 yen per dollar during trading on the 25th. This marked the lowest value of the yen against the US dollar so far this year. It was the lowest level in about 11 months since late October last year, when the exchange rate surpassed 150 yen per dollar.

[Image source=Yonhap News]

This phenomenon occurred as the Bank of Japan decided to maintain its large-scale monetary easing policy, keeping interest rates very low to stimulate the economy. Kyodo News explained, "There was a movement to buy dollars and sell yen, conscious of the differences in financial policies between the US and Japan."

The current yen value is even lower than when the Japanese government intervened in the market for the first time in about 24 years last September by selling dollars and buying yen (at 145.9 yen per dollar). Japanese Prime Minister Fumio Kishida said at the Prime Minister's Office on the day, "Excessive (exchange rate) fluctuations are undesirable," and added, "We will continue to watch closely with heightened vigilance."

Earlier, the Bank of Japan kept the short-term interest rate at -0.1% through the Monetary Policy Meeting on the 22nd. The target upper limit for the 10-year government bond yield was also maintained at about 1%, as decided last July. The Bank of Japan has stated that it has no intention to revise its monetary policy for the time being.

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