The Japanese yen has been experiencing significant weakness against the U.S. dollar. Recently, it reached a 38-year low of 161 yen against the dollar. This decline has raised concerns, prompting Japanese authorities to consider intervention in currency markets to stabilize the yen. The reasons behind this slide include signals from the U.S. Federal Reserve about maintaining elevated interest rates and political uncertainty in Europe ahead of the French parliamentary elections. While a weaker yen benefits Japanese exporters, it also increases the cost of imports, impacting household budgets.
BREAKING 🚨: Japan
Japanese Yen collapse continues as it falls to a new 38-year low against the U.S. Dollar pic.twitter.com/amjla6Pn3I
— Barchart (@Barchart) July 1, 2024