Rome, July 2 (askanews) – The yen’s slide continues. The Japanese currency today fell to 161.74 to the dollar, a level not seen since 1986. This further depreciation has benefited companies that are highly exporting, such as Sony or Tokyo Electron, which have recorded strong stock market increases, helping the Nikkei index rise again above 40,000 yen, something it hasn’t done since the end of March. The Topix index, for its part, reached 2,856.62, a level not reached since January 1990. The yen’s depreciation is due to the combined effect of possible delays in the easing of US monetary policy, with the Fed discouraged from lowering rates due to persistent high inflation; On the other hand, there is the prudence of the Bank of Japan, which did indeed end its negative interest rate policy in April, bringing its reference rate between 0 and 0.10%, but which still maintains a policy that is much looser than that of the other central banks of the large economies.
Masato Kanda, vice minister of finance with responsibility for international finance – the person in charge of the Tokyo government’s currency policy – has repeatedly raised the possibility of a new government intervention in recent weeks to buy yen and thus support its value: “Excessive fluctuations negatively affect the economy. We are ready to take appropriate measures at any time.” The U.S. Treasury Department, for its part, announced two weeks ago that Japan had been added to the so-called monitoring list of major trading partners that deserve “particular attention” based on their currency practices. This may have added pressure on the Japanese currency. The Japanese government and the central bank reportedly bought yen from late April to late May, pushing the currency up to 155 against the dollar, after having touched the level of 160. Tokyo never officially announces this type of operation.
