In today's trading session on June 26th, the yen's exchange rate against the US dollar closed at 160.39 yen per US dollar. The main reason for the yen's depreciation remains the persistent interest rate differential between Japan and other major economies, especially the United States.
In recent days, the Japanese government has signaled the possibility of intervention to address excessive volatility in the foreign exchange market, arguing that currency fluctuations reflect economic fundamentals. Meanwhile, the US dollar is favored because the Federal Reserve (Fed) has kept interest rates high longer than expected, with recent data suggesting the US economy remains robust. The Bank of Japan (BOJ), on the other hand, raised interest rates in March but they remain around 0%, leaving a large interest rate differential between the two countries.
Last week, many investors were disappointed when the Bank of Japan delayed announcing details of its bond-buying program reduction, noting that the plan would not be released until its July meeting. The Bank of Japan's cautious approach to monetary policy normalization has left markets skeptical about the prospects for a yen recovery.
In April and May of this year, the Japanese Ministry of Finance spent approximately $63 billion to alleviate the downward pressure on the domestic yen.
Source: https://vov.vn/kinh-te/dong-yen-nhat-ban-lien-tuc-giam-post1104068.vov
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