Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Yen drops to fresh 24-year low vs U.S. dollar

Economy Jun 21, 2022 03:50PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: An Australia dollar note is seen in this illustration photo June 1, 2017. REUTERS/Thomas White/Illustration 2/2

By Gertrude Chavez-Dreyfuss and Samuel Indyk

NEW YORK/LONDON (Reuters) - The Japanese yen plunged against the U.S. dollar on Tuesday to its lowest since October 1998, as the Bank of Japan's ultra-loose monetary policy was in stark contrast to an aggressive Federal Reserve determined to stamp out soaring inflation.

The yen dropped to a new 24-year low of 136.455 per dollar, extending losses which have already seen it shed more than 18% of its value versus the greenback this year.

Colin Asher, senior economist at Mizuho said yen moves appeared mainly flow-driven.

"The dollar broke through the old high at 135.60 yen and triggered stops taking it through the big figure at 136.0 and beyond," Asher noted.

"The rationale is the same as last week and the week before and the week before: The BoJ will be the last of the G10 to hike, the Fed is accelerating the pace, and (there is) a wider yield spread," he added.

The yen lost more ground after the BoJ on Friday dashed any expectations of a change in policy and continued to stand alone among other major central banks in its commitment to ultra-easy monetary settings.

Instead it has been ramping up bond-buying to hold 10-year yields in a targeted 0% to 0.25% range. But despite its efforts, the yield remains at the upper end of that target

Earlier in the day, Japanese Prime Minister Fumio Kishida effectively gave the green light to sell yen when he said the BoJ should maintain its ultra-loose monetary policy.

By afternoon trading, the yen was at 136.20 yen per U.S. dollar, just off the earlier 24-year low. The yen was also down 1.3% at 143.78 per euro, its lowest since June 9.

The yen has lost more than any other major currency against the greenback, as the BoJ's dovish policy stance diverged from the general hawkishness among global policymakers.

Graphic: Falling yen- https://fingfx.thomsonreuters.com/gfx/mkt/xmvjowrmwpr/falling%20yen.JPG

In other currencies, the dollar index was little changed at 104.41, but it was supported overall by expectations of hefty rate increases at the upcoming Fed meetings.

Richmond Fed President Thomas Barkin added to the U.S. central bank's hawkish rhetoric on Tuesday, saying that Fed Chair Jerome Powell's guidance of a 50 or 75 basis points rate hike in July is "reasonable."

Earlier, the dollar slipped after data showed U.S. existing home sales tumbled to a two-year low in May as prices jumped to a record high and mortgage rates increased further, pushing out entry-level buyers from the market.

The euro, on the other hand, was firmer at $1.0529, up 0.2%. It rose after European Central Bank chief economist Philip Lane said the ECB will raise rates by 25 basis points at its July meeting, but the size of its September hike is still to be decided, suggesting a larger 50 basis points hike is possible.

Sterling also rose against the dollar, up 0.4% at $1.2290 on hawkish comments from Bank of England policymakers.

BoE chief economist Huw Pill said on Tuesday the central bank would need to raise rates further to tackle surging inflation.

========================================================

Currency bid prices at 3:02PM (1902 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session

Dollar index 104.4000 104.4400 -0.02% 9.133% +104.5300 +103.9300

Euro/Dollar $1.0533 $1.0510 +0.22% -7.34% +$1.0583 +$1.0509

Dollar/Yen 136.5450 135.0600 +1.10% +18.61% +136.6150 +134.9400

Euro/Yen 143.83 141.97 +1.31% +10.35% +143.8900 +141.9600

Dollar/Swiss 0.9662 0.9677 -0.14% +5.94% +0.9683 +0.9632

Sterling/Dollar $1.2279 $1.2248 +0.26% -9.20% +$1.2324 +$1.2243

Dollar/Canadian 1.2920 1.2981 -0.47% +2.18% +1.2985 +1.2907

Aussie/Dollar $0.6976 $0.6954 +0.31% -4.04% +$0.6994 +$0.6935

Euro/Swiss 1.0177 1.0168 +0.09% -1.85% +1.0216 +1.0167

Euro/Sterling 0.8578 0.8579 -0.01% +2.10% +0.8610 +0.8569

NZ $0.6335 $0.6330 +0.09% -7.43% +$0.6363 +$0.6318

Dollar/Dollar

Dollar/Norway 9.8480 9.8920 -0.35% +11.89% +9.9015 +9.7770

Euro/Norway 10.3764 10.4119 -0.34% +3.63% +10.4236 +10.3170

Dollar/Sweden 10.0960 10.1052 +0.05% +11.96% +10.1297 +10.0380

Euro/Sweden 10.6355 10.6304 +0.05% +3.92% +10.6591 +10.6180

Yen drops to fresh 24-year low vs U.S. dollar
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
Count da Money
CountdaMoney Jun 21, 2022 4:47PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
🤣🤣🤣🤣🤣
Go North
Go North Jun 21, 2022 4:03PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Nice
Kasule Frank
Kasule Frank Jun 21, 2022 1:17PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Market munipulation, we need a new financial minister for Japan
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email