Japanese Yen Hits 34-Year Low Against Dollar

Published on Mar 27, 2024 12:04

Japanese yen hits its lowest level since 1990�s against the dollar after Bank of Japan is seen maintaining a dovish stance for interest rates coupled with massive strength in greenback overseas. The Bank of Japan hiked interest rates for the first time in 17 years last week. Yen has extended downside since then and hit its lowest levels in around 34 years. Japanese authorities stepped in during October 2022 to buy the currency when yen weakened to 151.94. The yen also came under pressure from a strong dollar amid growing expectations that rates could remain higher for longer in the US even as they start coming down in other major economies. USDJPY hit a high of 151.97, a level not seen since mid-1990�s. The dollar index that measures the greenback against a basket of currencies is floating above 104 mark awaiting a key US inflation reading that could influence the outlook for Federal Reserve monetary policy ahead. The crucial US PCE price index report, which is the Fed�s preferred inflation gauge is due to be released on Friday. On the NSE JPYINR futures are quoting lower by 0.21% at 55.34.