(Reuters) – The yen fell on Wednesday to its weakest levels against the dollar since 1990, with markets alert for any signs of intervention by Japanese authorities to shore up its currency.
The dollar hit a high of 155.17 yen, its highest level since 1990, before falling again in a choppy session, a sign of nervousness in the market around the 155 yen level. Lastly, it was trading at 154.97, an increase of 0.09%.
The yen's slide comes after a string of strong U.S. inflation data pushed the dollar to five-month highs and reinforced expectations that the Federal Reserve is unlikely to be in a rush to cut interest rates this year. .
The decline of the yen against the dollar has revived anticipation of monetary intervention. Japanese Finance Minister Shunichi Suzuki and other policymakers have said they are closely watching currency movements and will respond as necessary.
Dollar strength also prevailed at the spring meetings of the International Monetary Fund and World Bank held last week in Washington, and the United States, Japan and South Korea issued a rare joint statement on the issue.
Speaking after the Group of 20 (G20) financial leaders meeting in Washington, Bank of Japan Governor Kazuo Ueda said the Japanese central bank could raise interest rates again if their falls significantly raise inflation. , highlighting the dilemma that the weak currency has become for policy makers.
The Bank of Japan concludes its final policy meeting on Friday.
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