Japan’s Yen Hits 34-Year Low Against US Dollar, Sparking Concerns among Officials Samantha Johnson, April 29, 2024 In recent times, the Japanese currency, the yen, has fallen to its lowest level against the United States dollar in 34 years. The yen reached 160.17 per dollar, the lowest since April 1990. This has led to concerns among Japanese authorities that they may need to intervene in order to stabilize the currency. The decline of the yen can be attributed to a number of factors, including the Bank of Japan’s decision to keep interest rates at ultra-low levels while other central banks, including the US Federal Reserve, have raised borrowing costs. Despite a recent increase in interest rates by the BOJ – the first in 17 years – the downward trend has persisted particularly as expectations of rate cuts in the US have diminished due to higher-than-expected inflation. The weaker yen has benefited Japanese exporters and boosted tourism revenue but it has also led to higher prices for imported goods which puts pressure on household budgets. Japanese officials have indicated their readiness to intervene in foreign exchange market in order to prevent excessive fluctuations in the yen’s value although they have refrained from doing so during its year-long decline. Last Friday, The Bank of Japan maintained its benchmark interest rate at 0-0.1 percent. BOJ Governor Kazuo Ueda emphasized that exchange rate volatility would only impact monetary policy if it significantly affected economy and prices. He noted that if movements had a substantial impact adjustments to policy may be considered in response Economy