Yen depreciates further to 155/ $ level

25 Apr 2024 , 09:07 AM

As the Bank of Japan (BOJ) begins its two-day rate-setting meeting on Thursday, the yen crossed the 155 / $ level.

A robust dollar eventually broke above the 155 yen mark for the first time since 1990 in the previous session after trading in a narrow range over the previous several days. It was last stable at 155.34 yen in early Asia trade.

The dollar’s rise to the psychologically significant level has been impeded by intense rumours of intervention by Japanese authorities to support the yen, which some market participants saw as a line in the sand that would prompt Tokyo to take action.

The BOJ meets to review monetary policy today, and despite last month’s historic departure from negative rates, it is expected that the central bank will maintain its short-term interest rate objective. Nevertheless, the 155 yen level has been breached.

This week, BOJ Governor Kazuo Ueda announced that if trend inflation hits its objective of 2% as predicted, the central bank will hike interest rates once more.

The dollar was leading the market overall, making up some of the ground it had lost earlier in the week due to positive business activity data from the UK and the euro zone, which had driven up the euro and sterling.

While sterling was down 0.01% at $1.2463, the euro was recently up 0.04% at $1.0702, edging away from a high reached on Wednesday that was over one week ago.

The dollar recovered from a nearly two-week low it had touched in the previous session, holding steady at 105.79 against a basket of currencies.

Australia went away on a holiday, which reduced trading in Asia.

With the country’s consumer price inflation slowing down less than anticipated in the first quarter, the Reserve Bank of Australia (RBA) has been less likely to lower interest rates this year, which has helped the Aussie add 0.04% to $0.6500.

For feedback and suggestions, write to us at [e-mail]