https://www3.nhk.or.jp/news/html/20220615/k10013672171000.html

NY Foreign Exchange Market Price Drops to the Middle of 135 Yen per Dollar

In the New York foreign exchange market on the 14^th, the movement to sell the yen and buy the dollar became stronger, and the yen exchange rate temporarily dropped to the mid-135 yen level per dollar, renewing the yen’s depreciation for the first time in about 24 years.

Renewal of yen depreciation and dollar high level for the first time in 24 years

In the New York foreign exchange on June 14^th, the movement to sell the yen and buy the dollar with a higher yield is further strengthened against the background of the rise in long-term interest rates in the United States.

As a result, the yen’s exchange rate temporarily dropped to the mid-135 yen level per dollar, renewing the yen’s depreciation and the dollar highest level for the first time in about 24 years since October 1998.

Behind the rapid depreciation of the yen, the Fed (Federal Reserve Board), the central bank of the United States, held a monetary policy meeting for two days from June 14^th to curb inflation, raising interest rates to an unusual 0.75%. With widespread will be further accelerated, including expansion, long-term interest rates in the United States may rise to the 3.4% level in the New York bond market, and the interest rate differential between Japan and the United States may be widening.

Market official said, “the yen is slowly depreciating as dollar buying intensifies, and it is difficult to see where it will stop.”

In addition, the closing price of the Dow Jones Industrial Average on the New York Stock Exchange on June 14^th was 33.64.83 cents, which is 151.91 cents lower than the previous day, the lowest price following June 13^th when the stock plummeted.

The Dow Jones Industrial Average has fallen for the fifth straight business day, with a decline of more than $3,800 during this period.

Source: https://www3.nhk.or.jp/news/html/20220615/k10013672171000.html