The Yen Hits Historic Lows Against Major Currencies

By Stefano Rebaudo

Yen Weakens Further Against Dollar and Euro

The yen plunged to new lows against the dollar and euro on Thursday, with investors anticipating a lukewarm response from the upcoming Bank of Japan policy meeting. This lack of support is driving the Japanese currency down to levels not seen in decades.

Dollar Soars Above 155 Yen Barrier

The dollar surged past the 155 yen mark, reaching heights last witnessed in 1990. Breaking out of a prolonged period of stagnation, the dollar’s momentum remains unabated.

Market Speculation and Intervention Concerns

Market experts view the breach of the 155 yen threshold as a potential trigger for Tokyo officials to intervene. However, lingering concerns persist about the effectiveness of such measures as investors wait for a clear signal.

Euro Strengthens Against Yen

Simultaneously, the euro also gained ground against the yen, reaching a 16-year high. The combination of currency dynamics and market psychology is adding pressure on Japanese authorities.

BOJ Meeting Expectations

Market analysts anticipate a nuanced approach from the Bank of Japan in response to the prevailing currency challenges. Speculations suggest a slight adjustment in bond purchasing plans might be announced.

US Dollar Resilience and Market Factors

While the dollar faced some setbacks against other currencies earlier, positive economic indicators from Europe and the UK supported the euro and sterling. These factors continue to shape market sentiments.

Future Outlook and Market Uncertainties

In the midst of global economic shifts and policy considerations, the future trajectory of major currencies remains uncertain. The evolving landscape of central bank strategies and market reactions adds complexity to the currency market dynamics.