Rome, 26 June. (askanews) – The yen fell again today to 160 against the dollar for the first time since April 29, the day the government and the Bank of Japan apparently intervened to support the currency. The dollar has arrived to trade at 160.05 yen at some point in the trading day. This is a level which, apart from April, had not been seen for over thirty years. At the basis of the landslide in the yen is the combination of possible delays in the easing of US monetary policy, with the Fed being discouraged from lowering rates due to persistent high inflation; on the other hand there is the prudence of the Bank of Japan, which indeed put an end to the negative rate policy in April, bringing its reference rate between 0 and 0.10%, but which still maintains a largely looser policy than that of the other central banks of the large economies.
Masato Kanda, deputy finance minister with responsibility for international finance – i.e. the person most responsible for the currency policy of the Tokyo government -, two days ago raised the possibility of a new government intervention to purchase the yen and therefore support its value: “The fluctuations excessively adversely affect the economy. We are ready to take appropriate measures at any time.” The US Treasury Department, for its part, announced last Thursday that Japan has been added to the so-called monitoring list of major trading partners that deserve ” special attention” based on their currency practices. This may have added pressure on the Japanese currency. The Japanese government and central bank reportedly bought yen from late April to late May, pushing the currency up to 155 against the dollar, after it had touched the 160 level. Tokyo never officially announces this type of operation.
