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Published Time: 29.04.2024 - 06:13:13 Modified Time: 29.04.2024 - 06:13:13

The downward spiral has continued in recent weeks despite the BOJ raising interest rates last month for the first time in 17 years as expectations of interest rate cuts in the US fade amid above-target inflation. Japanese yen


Officials in Japan, which is marking a public holiday, did not confirm an intervention by authorities.

The yen has been on a near continual slide since early 2021 as the Bank of Japan (BOJ) has maintained ultra-low interest rates while the US Federal Reserve and other central banks have hiked borrowing costs.

The downward spiral has continued in recent weeks despite the BOJ raising interest rates last month for the first time in 17 years as expectations of interest rate cuts in the US fade amid above-target inflation.

While the weak yen has helped Japanese exporters boost profits and put more cash in the pockets of tourists visiting Japan, it has put pressure on household budgets by raising the prices of imported goods.

Japanese officials have repeatedly stated that they are prepared to step in to prevent sharp movements in the exchange rate although authorities have refrained from intervening during the currency’s yearlong slide.

On Friday, the Japanese central bank kept its benchmark rate unchanged at 0 to 0.1 percent.

BOJ Governor Kazuo Ueda said at a news conference that exchange-rate volatility would affect monetary policy only if there were a significant impact on the economy.

“If yen moves have an effect on the economy and prices, that is hard to ignore. It could be a reason to adjust policy,” Ueda said.

NEWS