The yen falls to its lowest level against the dollar in 20 years

JThe Japanese currency, the yen, fell to its lowest level against the dollar in 20 years. 126 yen was to be paid for the dollar on Wednesday morning, more than at any time since 2002. The reason for this is the widening gap between the Japanese central bank’s accommodative monetary policy and the gradual tightening in the United States, where the central bank announced the interest rate hike in mid-March and raised the policy rate.

The yen had already lost 10% of its value against the dollar last year. “The Japanese yen is one of the weakest currencies in the world this year,” analysts at the bank said last week. They also cited Japan’s heavy reliance on fossil fuel imports as an explanation.

Japanese Prime Minister Fumio Kishida declined to comment on the yen’s weakness on Tuesday. “I won’t comment on exchange rates, but their stability is important and I think rapid fluctuations are undesirable,” he said.

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