Official statements from the Japanese Ministry of Finance or Bank of Japan

Japanese Yen Hits 34-Year Low at ¥160; No Govt or BoJ Intervention

Apr 29, 2024, 02:38 AM

The Japanese yen has experienced a significant decline, reaching a 34-year low against the U.S. dollar, with the exchange rate briefly hitting ¥160 and even dipping into the ¥158 range. This marks the first time since 1990 that the yen has weakened to this level. The rapid depreciation has raised concerns about Japan's economic stability, given its high debt-to-GDP ratio of approximately 250%. Analysts attribute the yen's fall to Japan's increasing trade deficits, driven by rising commodity prices, particularly oil, and its role as a source of cheap funding. Despite these challenges, the Japanese government and the Bank of Japan have so far refrained from intervening in the foreign exchange markets, constrained by the necessity to keep interest rates low due to Japan's massive debt.