iifl-logo

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

sidebar image

Dollar steady, Yen weakens

24 Jun 2024 , 10:36 AM

On Monday, the dollar remained largely steady. Meanwhile, the Japanese yen hovered near the 160 level, prompting verbal warnings from Japanese authorities over concerns of market intervention.

The yen weakened to 159.94 per dollar in early trading, its lowest since April 29, when it hit a 34-year low of 160.245. Japanese authorities responded by spending approximately 9.8 trillion yen to support the currency.

By the latest updates, the yen strengthened slightly to 159.70 per dollar. Japan’s top currency diplomat, Masato Kanda, assured on Monday that authorities would take necessary actions if there were excessive fluctuations in foreign exchange rates. He also clarified that Japan’s inclusion on the U.S. Treasury’s monitoring list would not restrict their responses.

The yen faced renewed pressure following the Bank of Japan’s decision earlier this month to postpone reducing its bond-buying stimulus until the July meeting. This decision contributed to a 1.4% decline in the yen’s value in June.

According to a summary of opinions from the BOJ’s June policy meeting released on Monday, some policymakers advocated for timely interest rate hikes due to concerns about inflation exceeding expectations.

The yen’s depreciation against the dollar by over 10% this year is primarily driven by the substantial interest rate differential between Japan and the United States. This gap has spurred demand for carry trades, where investors borrow yen at low rates to invest in higher-yielding currencies. As a result, both the Australian and New Zealand dollars have surged to their highest levels against the yen in 17 years.

Related Tags

  • Dollar
  • FOREX
  • Forex News
  • Forex Updates
  • Yen
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More
Knowledge Center
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Capital Services Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Loading...

Follow us on

facebooktwitterrssyoutubeinstagramlinkedintelegram

2025, IIFL Capital Services Ltd. All Rights Reserved

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities Ltd). All rights Reserved.

IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)

ISO certification icon
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.