Japan’s Chief Cabinet Secretary Hirokazu Matsuno has issued a warning that the Japanese yen is rapidly approaching its highest levels against the US dollar in 34 years. The USD/JPY currency pair is currently trading near 155.40, close to the peak it reached in 1988. Matsuno’s comments come amidst growing concerns about the yen’s rapid depreciation, which has been driven by a widening interest rate differential between Japan and the United States. The Bank of Japan has maintained an ultra-accommodative monetary policy, while the Federal Reserve has aggressively raised interest rates to combat inflation. Analysts believe that the yen’s weakness could continue in the near term, as the Bank of Japan is unlikely to change its dovish stance anytime soon. The yen’s depreciation has been a major concern for Japanese policymakers, as it makes imports more expensive and could lead to higher inflation. The government has taken steps to support the yen, including intervening in the currency market. However, these measures have had limited success so far. The yen’s weakness is also a concern for global investors, as it could lead to volatility in the financial markets. As such, Matsuno’s warning is likely to be closely watched by market participants around the world.
USD/JPY Nears 34-Year Highs, According to Japan’s Chief Cabinet Secretary Hayashi
