The USD has reached its highest level against the Japanese Yen in nearly 38 years. The Yen has been affected as investors flock to the USD to take advantage of U.S. interest rates at 5.25% - 5.5%. U.S. Treasury yields have risen as inflation in other countries has increased. For instance, Australia's consumer inflation rose to its highest level in six months last May.

The Japanese government spent 9.79 trillion Yen (61 billion USD) from April 26 to May 29 to curb the Yen's decline. However, today the JPY continued to fall to a new record low, and the Japanese government may intervene again. However, last week, the U.S. placed Japan back on the watchlist for currency manipulation. This will make it more difficult for authorities if they want to intervene in the currency market.

Japanese Yen Outlook

Jun 27 2024