Bloomberg reported on the 19th that the Japanese yen fell against the dollar for a 13th consecutive trading day for the first time in half a century.
According to Yahoo Finance, the dollar/yen exchange rate rose to 127.2220 yen per dollar at one point, the highest level since May 2002.
The dollar/yen exchange rate is moving around 127.13 yen per dollar as of 7:45 a.m. GMT+8.
The dollar/yen closed lower on the previous day, marking the longest 12 consecutive trading days since Bloomberg began counting.
Market officials said the yen’s value has continued to decline as the perception that the interest rate gap between the U.S. and Japan is inevitable.
Haruhiko Kuroda, president of the Bank of Japan, said at a meeting of the House of Representatives’ Settlement Administration Monitoring Committee the previous day, “It is necessary to consider excessive (exchange rate) fluctuations as negative for the economy.”
However, Governor Kuroda is different from the U.S. Federal Reserve (Fed), which is rushing to raise its key interest rate by sticking to its existing position on economic stimulus.
Critical Lai, head of foreign exchange strategy at CIBC Bank of Canada, explained, “The yen is moving incredibly, but it is not surprising considering the difference between the Bank of Japan and the Fed’s (monetary policy) position.”
Bloomberg said there is a growing perception in the Tokyo foreign exchange market that the dollar/yen exchange rate will reach 130 yen per dollar in a few months.
“Technically, the dollar/yen exchange rate is open to 135 yen per dollar,” said Kentaro Doi of Mitsui Mitomo Trust Bank in New York. “It is likely that the dollar will rise to 129 yen per dollar due to Japanese trade statistics to be released this week.
