The U.S. dollar briefly advanced to the 145-yen line in New York on Friday, a level unseen since late June, as a fresh rise in key U.S. long-term interest rates prompted dollar-buying and yen-selling.
After hitting 145.00 yen, the dollar was quoted at 144.90-145.00 yen at 5 p.m. Friday, compared with 144.72-82 yen a day earlier. The dollar traded at 143.80-81 yen late Thursday in Tokyo. Financial markets in Japan were closed Friday due to a holiday.
The wholesale U.S. price index for July, released in the morning, rose by a higher-than-expected 0.8 percent, fueling speculation that the country's central bank will decide on another rate hike to fight stubborn inflation.
The Federal Reserve increased its interest rates to the highest level in 22 years in a policymaking meeting last month, while the Bank of Japan maintains ultralow rates as part of its monetary easing policy.
© KYODO
8 Comments
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sakurasuki
Nothing stop dollar, Japan will be in Obon holliday, and be surprised when they go back to work.
Kaowaiinekochanknaw
Amazing. Very cheap yen atm
Great for prices of exports however, shipping has soared due to the fact that shipping worldwide is conducted in USD so offests the lower pricing somewhat.
For imports, which is most food products, LPG, semi conducters and the like, it's an unfolding disaster for inflation on the cost of living against real wages in Japan and for the people that live and work in Japan.
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kurisupisu
Several weeks ago the trend was apparent.
Other posters have also recommended to avoid the yen and this 145 level will just lead to further weakness.
I expect the 150 level to be the next target
justasking
Unless Japan raises their interest rates to bring inflation under control like the rest of the world, I can see the yen going up to 200 against the American dollar. Unfortunately, the government is being ran by a bunch of old men who forefathers were politicians and many of those old men inherited those lifetime jobs and where it takes forever to get anything changed because these old men don't like change.
commanteer
Even 300. But the yen will not avoid collapse no matter what they do at this point. It is inevitable and is just among the first of many currencies that will collapse. Japan's debt is unsustainable at current interest rates, let alone higher rates.
This has been baked in and we are all in for a rough ride. When it all falls apart, they will introduce a central bank digital currency to "rescue" us.
falseflagsteve
The Yen became sooo weak. Nice for me you see as I do some of my business in GBP, it's like a pay rise, lol
Some people benefit from the weak Yen, some don't you see. Well, for me it's great.
Elvis is here
On know. Very false. Not in a world economy. My son knows that They should buy Bitcoin in they situation. Tourists love it.
kurisupisu
I’m getting great benefit from the weak yen too
The inept Japanese authorities make it all possible!