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| The Yen slipped to 145 Yen/USD. (Source: Reuters) |
The yen hit a low of 145.07 yen per dollar in early Asian trading, its lowest in more than seven months and on track for a quarterly decline of more than 8%.
The Japanese currency continued to fall sharply, raising speculation that the government may intervene.
Government intervention will not be effective when major currencies move in tandem, said Saktiandi Supaat, head of foreign exchange strategy and research at Maybank.
However, the 145 Yen/USD mark is still considered a record low.
Data released on June 30 showed that core consumer prices in Tokyo increased 3.2% year-on-year in June 2023, exceeding the Bank of Japan's 2% target for the 13th consecutive month.
The Yen began to weaken in mid-June 2023, after the Bank of Japan (BOJ) announced that it would keep short-term interest rates unchanged at -0.1% and the 10-year bond yield ceiling at 0%.
This move contrasts with the European Central Bank (ECB) and the US Federal Reserve (Fed).
BOJ assessed at that time: " Economies and financial markets at home and abroad still face many uncertainties."
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