The yen exchange rate began to fall to around the 1 dollar = 127 yen range on the 19th as long-term interest rates rose in the bond market due to the observation of an accelerated U.S. financial tightening.
In the Tokyo foreign exchange market, the yen exchange rate fell 0.51 yen to 1 dollar = 127.14 yen as of 7:30 a.m., compared to 5 p.m. the previous day.
The yen temporarily fell against dollar to 127.22 yen, the lowest level in nearly 20 years since May 2002.
The prospect of the Federal Reserve expanding its financial tightening has raised the U.S. long-term interest rate, widening the gap between the U.S. and Japan, encouraging yen sales and dollar purchases.
The yen was trading at 0.65 yen as of 9:51 a.m. and 0.51% lower to 1 dollar = 127.28 to 127.29 yen.
In the Sydney foreign exchange market in Australia, where the Easter holiday ended, the yen exchange rate took over the flow of overseas markets and started at 1 dollar = 127.00 to 127.10 yen, down 1.45 yen from the previous day.
Earlier on the 18th (local time), the yen fell for the fourth trading day in New York and closed at = 126.95 to 127.05 yen, 0.45 yen behind the 15th.
It fell to its lowest level in 20 years since May 2002. Long-term interest rates rose on expectations that the Fed would actively carry out financial tightening, attracting yen sales and dollar purchases.
At a time when inflation rates far exceeded the Fed’s policy goals, the atmosphere that the Fed is stepping up financial tightening has spread as the economic base remains solid.
As the Bank of Japan maintained low interest rates, yen sales and dollar purchases also flowed in, conscious of differences in the direction of U.S.-Japan financial policies.
In the Tokyo foreign exchange market, the yen is falling against the euro. As of 9:49 a.m., 1 euro = 137.13 to 137.14 yen, down 0.49 yen from the previous day.
The euro is falling behind against the dollar. As of 9:49 a.m., 1 euro = 1.0773 to 1.0775, down 0.0017 dollars from the previous day.
