The Japanese yen plummeted to its lowest level against the US dollar since the 1990s as the Bank of Japan maintains a dovish stance on interest rates amidst a surge in the greenback’s strength globally.
Last week, the Bank of Japan raised interest rates for the first time in 17 years, triggering a continued decline in the yen, reaching its lowest point in approximately 34 years.
Japanese authorities intervened in October 2022 to purchase the currency when the yen weakened to 151.94.
Additionally, the yen faced pressure from a robust dollar, fueled by expectations of sustained higher interest rates in the US compared to other major economies. The USDJPY pair soared to 151.97, a level unseen since the mid-1990s.
Meanwhile, the dollar index, which gauges the greenback against various currencies, hovers above the 104 mark, anticipating the release of the crucial US PCE price index report, the Federal Reserve’s preferred inflation measure, scheduled for Friday. On the NSE, JPYINR futures are down by 0.21% at 55.34.
