In today's trading session, June 26, the yen exchange rate against the USD ended at 160.39 yen per USD. The main reason for the yen's depreciation is still the persistent interest rate differential between Japan and other major economies , especially the US.
In recent days, the Japanese government has signaled its willingness to intervene to deal with excessive volatility in the foreign exchange market, saying currency movements will reflect economic fundamentals. Meanwhile, the US dollar has been favored by the US Federal Reserve (Fed) holding interest rates higher for longer than expected amid recent data showing the US economy remains solid. Meanwhile, the Bank of Japan (BOJ) raised interest rates in March but has kept them at around zero percent, leaving a large interest rate gap between the two countries.
Last week, many investors were disappointed when the Bank of Japan delayed announcing details of its plan to reduce its bond-buying program, and is expected to announce it at its July meeting. The Bank of Japan’s cautious stance on monetary policy normalization has cast doubt on the prospects for a recovery in the yen.
In April and May, Japan's Finance Ministry spent about $63 billion to ease depreciation pressure on the domestic yen.
Source: https://vov.vn/kinh-te/dong-yen-nhat-ban-lien-tuc-giam-post1104068.vov
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