Spotlight on the yen, which slipped against the dollar in overnight trading to 160.87. Now the USD-JPY exchange rate is losing ground, at 160.31.
The fact is that the weakening of the yen continues to worry the Japanese authorities: the Japanese currency tested 160 against the US dollar for the first time since 1990 at the end of April this year, leading the Japanese Treasury Ministry to intervene in the markets for the first time since October 2022 in the days between April 26 and May 29, with the aim of supporting the currency. Currency which at the end of May had collapsed to 160.88, the lowest value since 1986.
Today, Japan’s Finance Minister Shunichi Suzuki admitted that the Tokyo government is “deeply concerned about the impact of forex on the economy.”
It should be noted that the Japanese currency lost 2% in the month of June and 12% in the year against the US dollar, due to the divergence between the rates of Japan and those of the United States, which continues to be large even after the end of negative rates decided by the Bank of Japan last March, with the first rate increase since 2007.
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The Tokyo stock market is under pressure, with the Nikkei 225 index losing around 1% at around 7.20am Italian time, to 39,284.05 points.
