Japanese Finance Minister Shunichi Suzuki has expressed concern over the yen’s slide to a 38-year low against the US dollar. He stated that necessary actions would be taken to prevent any negative impact on the economy due to rapid and one-sided movements in the currency. The yen fell to 160.88 against the dollar on Wednesday, marking its lowest level since 1986.
Suzuki emphasized that the government is deeply concerned about the implications of the yen’s depreciation on the economy and is analyzing the factors behind the currency’s decline. He assured that authorities will intervene if needed to address the situation and stabilize the currency.
The weakening of the yen has benefited Japanese exporters but has led to increased costs for imports, particularly food and fuel, impacting household budgets. The Bank of Japan has maintained low borrowing costs to stimulate economic growth, while the US Federal Reserve has raised interest rates to combat inflation.
Japan last intervened in the foreign exchange market in April, purchasing a significant amount of yen to support the currency. However, recent signals from the US Federal Reserve regarding interest rate policies and political uncertainties in Europe have contributed to further depreciation of the yen.
Investors are closely monitoring
