Search
Close this search box.
Search
Close this search box.

Japanese Yen Rebounds Strongly From 1990 Low Against the Dollar

Japanese Yen Dollar Exchange Rate Surge

The Japanese yen has been on a wild ride lately, and it’s been making headlines all over the financial world.

So, the yen has been in a bit of a freefall against the US dollar, and on Monday, it hit a 34-year low. That’s right, the last time the yen was this weak was way back in April 1990! This had everyone talking about whether the Japanese authorities would step in to prop up the currency, like they did in late 2022.

But then, something crazy happened. The yen suddenly surged from 160.17 per dollar to 155.01 later in the day. This got traders buzzing, with many speculating that the authorities had indeed intervened and bought up a bunch of yen to stop the slide.

It was a public holiday in Japan, so the officials didn’t come out and confirm whether they had actually intervened or not. It’s all a bit of a mystery.

But why has the yen been struggling so much in the first place? Well, it all comes down to interest rates. The Bank of Japan (BOJ) has been keeping its rates super low, while the US Federal Reserve and other central banks have been hiking their borrowing costs. This has made the yen less attractive to investors, and it’s been sliding against the dollar for over a year now.

Last month, the BOJ did raise interest rates for the first time in 17 years, but it hasn’t been enough to turn the tide. The yen’s downward spiral has continued, especially as expectations of interest rate cuts in the US have faded due to stubborn inflation.

Now, a weak yen isn’t all bad news. It’s actually helped Japanese exporters rake in more profits, making Japan a more affordable destination for tourists. But on the flip side, it’s been putting pressure on household budgets by making imported goods more expensive.

Japanese officials have been saying for a while that they’re ready to step in if the exchange rate moves too sharply, but they’ve held off on intervening during the yen’s yearlong slide.

On Friday, the BOJ decided to keep its benchmark rate unchanged at 0 to 0.1 percent. The central bank’s governor, Kazuo Ueda, said that exchange-rate volatility could affect monetary policy if it had 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 explained at a news conference.

The Information is Taken from The Economic Times, Times of India and France24


Subscribe to Our Newsletter

Related Articles

Top Trending

Robert Prevost Becomes Pope Leo XIV
Robert Prevost Becomes Pope Leo XIV: First American Pontiff
Historical Events and Famous People Born on May 9
Discover the Historical Events and Famous People Born on May 9
May 9 Zodiac
What's in Your Zodiac If You Born on May 9 [Life, Career, Relationship]
Farm-to-Table Agriturismo Trips in Italy
Why Millennials Are Choosing Farm-to-Table Agriturismo Trips in Italy?
Best Mobile Horror Games
The Best Mobile Horror Games That Will Keep You Up at Night

LIFESTYLE

summer birthday party ideas
Creative Summer Birthday Party Ideas for Kids in 2025
May 6 Zodiac
May 6 Zodiac: Positive Traits, Compatibility and More about Taurus
self storage solutions for life transitions
How Self Storage Can Help During Major Life Changes (Divorce, Moving, etc.)?
why is my poinsettia dying
Why Is My Poinsettia Dying? Tips To Revive Your Wilting Poinsettia Plant
crypto retirement plan strategies
7 Ways Crypto Can Reshape Your Retirement Plan for the Future

Entertainment

rocket league unblocked
Rocket League Unblocked: Soccer And Vehicular Mayhem Online Game
smokey robinson sexual assault allegations
Smokey Robinson Faces Sexual Assault Allegations by 4 Women
Disneyland Abu Dhabi
Disneyland Abu Dhabi: First Disney Theme Park in Middle East
Netflix OpenAI Partnership
Netflix Teams Up with OpenAI to Transform Streaming Experience
Bumassburner Leak
Bumassburner Leak Incident: What You Need to Know

GAMING

Best Mobile Horror Games
The Best Mobile Horror Games That Will Keep You Up at Night
Evolution of Video Game Graphics
The Evolution of Video Game Graphics: 1980s to 2025
Best Workouts Inspired by Video Games
Level Up Your Fitness: Best Video Game-Inspired Workouts
rocket league unblocked
Rocket League Unblocked: Soccer And Vehicular Mayhem Online Game
Maksym Krippa GSC Game World
S.T.A.L.K.E.R. Reimagined: How Maksym Krippa’s Entry Reshaped GSC Game World in 2023

BUSINESS

Business Behind Game Localization
The Business Behind Game Localization: How It Works
International Employment Agencies
How international employment agencies can help you find talent in hard-to-reach markets?
Transition Your Business to Web3
How to Transition Your Business to Web3 Successfully
How to Calculate Quarterly Tax Payments
How to Calculate Quarterly Tax Payments in 5 Easy Steps
credit suisse tax evasion
Credit Suisse Fined $511M for U.S. Offshore Tax Evasion Scheme

TECHNOLOGY

Maksym Krippa GSC Game World
S.T.A.L.K.E.R. Reimagined: How Maksym Krippa’s Entry Reshaped GSC Game World in 2023
Strengthening Cybersecurity with Security Operations
Strengthening Cybersecurity with Security Operations, CWPP, and Product Security
pitch a game idea
How to Pitch a Game Idea to a Developer or Publisher?
Web3 impact on virtual reality experiences
How Web3 Is Redefining Virtual Reality and Immersive Experiences?
Smart Contracts in Web3
How Smart Contracts Are Shaping the Future of Web3?

HEALTH

Yimusanfendi
7 Incredible Benefits of Yimusanfendi Meditation and Possible Side Effects
Connection Between Hydration and Urinary Health
The Connection Between Hydration and Urinary Health
Neuralink Brain Implant Patient Regains Speech
Neuralink Brain Implant Helps ALS Patient Regain Speech with AI Support
Wegovy for Weight Loss
Wegovy for Weight Loss: Is It Worth Buying Online?
Role of Sperm DNA Fragmentation Testing in IVF
The Role of Sperm DNA Fragmentation Testing in IVF with ICSI Success