People walk past screens displaying stock market information in Tokyo, Japan, April 25, 2024. Tokyo stocks closed significantly lower on Thursday, snapping a three-day winning streak, as investors took steps to lock in gains amid concerns over corporate performance.(Xinhua/Zhang Xiaoyu)
TOKYO, April 25 (Xinhua) -- The Japanese yen continued to drop against the U.S. dollar to a fresh low in 34 years on Thursday after sinking below the 155 psychological mark, keeping the market on alert for possible interventions.
On Thursday, the yen dipped as low as 155.74 in Tokyo, after the Japanese currency briefly fell below the 155 threshold in London for the first time since June 1990 on Wednesday.
Local analysts pointed out that recent firmer-than-expected U.S. economic data has reduced trader bets that the Federal Reserve will soon cut interest rates, suggesting a continuation of the wide Japan-U.S. interest rate differential.
As the yen refreshes its 34-year lows, the market is concerned about possible forex interventions by the Japanese authorities, but the recent verbal warnings by Japanese Finance Minister Shunichi Suzuki and Finance Minister Masato Kanda eyeing actions to counter excessive volatility in the market seemed to have limited impact.
While the Bank of Japan (BOJ) has signaled it will maintain an accommodative stance for the time being, Governor Kazuo Ueda said last week the BOJ will likely raise interest rates if underlying inflation continues to increase.
Due to the current strong demand for the U.S. dollar, analysts pointed out that the market generally believes that even if intervention is carried out, the effect of a stronger yen may be relatively limited. ■
