Yen falls to near 38-year low

The Yen has fallen 12% this year against the USD. Photo: Xinhua.

The yen fell to more than 160 yen per dollar on June 27, near a 38-year low, Reuters reported. The yen has fallen about 2% for the month and 12% for the year against the dollar.

At one point during the day, the US dollar was trading at 160.05 yen, marking its lowest level since April 29, according to Xinhua.

The Japanese government has recently signaled the possibility of taking appropriate action to deal with excessive volatility. Since late April, the Japanese government has spent 9.79 trillion yen (about more than 60 billion USD) to push the yen up 5% from its lowest level in 34 years.

Analysts said that although intervention risks have increased, the Japanese government may be waiting for the US personal consumption expenditure (PCE) data report before entering the market.

“The level of the exchange rate and the pace of the decline are both important factors for the Treasury to consider when intervening in the foreign exchange market,” said Boris Kovacevic, global macro strategist at global payments firm Convera in Austria. “However, the decline in options volatility suggests that the recent rally has not yet met the Treasury’s criteria. Policymakers may wait for the PCE report before making a final decision before the end of the week.”

Japanese households are still struggling with the cost of living amid a falling yen. This is largely due to the weaker yen, which makes imported goods more expensive. The Japanese government is looking to take additional measures to curb inflation.

Source: https://laodong.vn/kinh-doanh/dong-yen-giam-xuong-gan-muc-thap-nhat-trong-38-nam-1358279.ldo