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Japan’s yen dips to 34-year low against US dollar

The Japanese yen has hit a decades-long low against the dollar, even after Japan’s central bank announced a hike in interest rates.

Currency markets saw Japan’s yen dip to its lowest point against the dollar in more than three decades on Wednesday.

The fall has raised speculation that authorities might intervene in market trading to prop up the currency.

What’s happening with the yen?

The yen fell to 151.97 against the dollar — the lowest point since 1990 — before rallying slightly. The dollar was last down at 151.19.

In the past two years, the yen has weakened significantly from roughly 115 against the dollar before Russia’s invasion of Ukraine.

A weaker yen makes exports from Japan cheaper. However, it also drives up import costs and energy prices for consumers in the world’s fourth-largest economy.

In a sign of concern about the need to shore up the currency, the Bank of Japan, the Finance Ministry, and Japan’s Financial Services Agency held a meeting late in Tokyo trading hours.

Japenase Finance Minister Shunichi Suzuki said earlier in the day that authorities could adopt “decisive steps” against yen weakness. 

“Now we are watching market moves with a high sense of urgency,” he told reporters.

Source: Dw

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