According to Japanese Kyodo News Agency reported on July 14, according to major banks, the Japanese yen exchange rate against the U.S. dollar in the Tokyo foreign exchange market in early trading on the 14th once fell to above 138 yen per U.S. dollar, hitting a 24-year low since September 1998. . In view of market predictions that the Federal Reserve will accelerate the tightening of monetary policy to curb historic inflation, the interest rate gap between Japan and the United States will widen, and the trend of buying US dollars and selling Japanese yen will prevail. According to the report, as of 11 a.m. on the 14th, the exchange rate of the Japanese yen against the U.S. dollar was 137.90 to 137.91 yen per U.S. dollar, a depreciation of 0.86 from the previous trading day.
The exchange rate of Japanese yen against euro is 138.12 to 138.19 yen per euro, depreciating by 0.64. According to reports, in the New York foreign exchange market overnight, the consumer price index for June announced by the U.S. Department of Labor in early trading rose by 9.1% year-on-year. The increase exceeded market expectations and hit a 40-year high. The market believes that the interest rate gap between Japan and the United States will widen. They bought dollars and sold yen. The Japanese yen exchange rate once fell to 137.87 yen per US dollar.
In addition, there is a view that in order to curb high inflation, the Federal Reserve will decide to significantly increase interest rates by 21% at the Federal Open Market Committee (FOMC) later this month, which is equivalent to 4 times the normal operation. Therefore, the market is once again aware of the difference between monetary policy and the Bank of Japan's continued large-scale easing policy.
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