The value of the yen, which has been showing a continuous decline, has fallen to its lowest level in 34 years.
According to local media including Kyodo News on the 23rd, the yen-dollar exchange rate in the New York foreign exchange market rose to 154.85 yen per dollar during the day on the previous day (local time). The yen-dollar exchange rate falling to the high 154 yen range per dollar is the first time in about 34 years since June 1990.
The background of the yen's weakness is the expectation that the U.S.-Japan interest rate differential will remain high for the time being as the U.S. delays the timing of interest rate cuts due to a strong economy. Federal Reserve (Fed) Chairman Jerome Powell indicated on the 16th that the benchmark interest rate would be maintained without cuts for the time being until there is greater confidence that inflation has fallen to 2%. Some on Wall Street have even argued that "if this continues, interest rates will need to be raised."
On the 19th, news that Israel attacked Iran caused the yen's value to drop to the 153 yen per dollar range (yen appreciation). However, as concerns about the Middle East situation have somewhat eased, there is a strong movement to sell yen again and buy dollars.
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