Yen falls to near 38-year low

The Yen has fallen 12% against the US Dollar this year. Photo: Xinhua.

The yen fell to more than 160 yen per dollar on June 27, near a 38-year low, Reuters reported. The yen has fallen about 2 percent this month and 12 percent this year against the dollar.

According to Xinhua, at one point in the day, the USD was trading at 160.05 Yen, marking its lowest level since April 29.

The Japanese government has recently signaled its willingness to intervene to counter excessive volatility. Since late April, the government has spent 9.79 trillion yen (about more than $60 billion) to push the yen up 5% from its 34-year low.

Analysts said that although intervention risks have increased, the Japanese government may be waiting for the US personal consumption expenditure (PCE) data report before entering the market.

“The level and pace of decline are both important factors for the Treasury to consider when intervening in the FX market,” said Boris Kovacevic, global macro strategist at global payments firm Convera in Austria. “However, the reduced volatility in the options market suggests that the recent rally has not yet met the Treasury’s criteria. Policymakers may wait for the PCE report before making a final decision before the end of the week.”

Japanese households are still struggling to meet their daily living expenses amid the yen's depreciation. This is largely due to the weaker yen, which makes imported goods more expensive. The Japanese government is looking to take additional measures to curb inflation.

Source: https://laodong.vn/kinh-doanh/dong-yen-giam-xuong-gan-muc-thap-nhat-trong-38-nam-1358279.ldo