"The interest rate gap between the two countries highlighted, strengthening the move to sell yen and buy dollars"
The yen-dollar exchange rate has been falling continuously, at one point surpassing 155 yen, reflecting a decline in the value of the yen.
According to public broadcaster NHK on the 24th, the yen-dollar exchange rate briefly exceeded 155 yen in the London foreign exchange market that day. This is the first time in 34 years since June 1990 that the yen-dollar exchange rate has surpassed 155 yen.
NHK explained, "As the perception that the U.S. economy is robust spreads, expectations of an early interest rate cut in the U.S. have receded, highlighting the interest rate differential between the U.S. and Japan, which has strengthened the movement to sell yen and buy dollars."
Japanese officials have expressed willingness to intervene in the market, but the yen's weakness continues. Finance Minister Suzuki Shunichi said at a press conference the previous day, "We are watching with high tension," and added, "We will respond appropriately while closely communicating with relevant authorities in each country."
Earlier, the finance ministers of Korea, the U.S., and Japan held the first trilateral finance ministers' meeting on the 17th (local time) at the U.S. Treasury Department in Washington D.C., adopting a joint declaration acknowledging "serious concerns from Japan and Korea regarding the recent sharp depreciation of the yen and the won."
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