Despite Japan's Negative Interest Rate Policy Lift, Yen Weakens to Lowest Since November Last Year...

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The value of the yen has fallen to its lowest level in four months despite Japan's abolition of its negative interest rate policy. This is attributed to the Bank of Japan (BOJ) expressing a continued commitment to monetary easing even amid interest rate hikes.

In the Sydney foreign exchange market, the yen-dollar exchange rate was trading in the 151 yen range per dollar as of 2:57 PM on the 20th. The yen-dollar exchange rate surpassing 151 yen is the first time in four months since November last year.

Although the BOJ raised the short-term policy rate by 0.1 percentage points from the previous -0.1% and abolished the negative interest rate policy the day before, its declaration to maintain an accommodative financial environment through continued government bond purchases is the background for the yen's weakness.

The Nihon Keizai Shimbun reported, "There is ongoing selling pressure on the yen due to the outlook that the interest rate gap between the U.S. and Japan is unlikely to narrow anytime soon."

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