The yen on Thursday dropped to the lowest level against the dollar since
1990 after
US inflation data indicated more aggressive interest rate hikes from
the Federal Reserve.
اضافة اعلان
One dollar was worth 147.67 yen following the stronger-than-expected
inflation number, which comes as Japan's central bank holds off from hiking
interest rates.
"The yen has been the weakest major currency so far in 2022,"
noted Carol Kong, a currency strategist at Commonwealth Bank of
Australia.
"There are two key reasons behind its rapid weakness. The first is the
growing divergence in monetary policy between the US and Japan," she told
AFP.
"The Bank of Japan continues to keep monetary policy easy because
inflation and wages remain relatively low" in the country.
Kong said the yen had been hit hard also by a collapse in Japan's current
account balance after oil prices surged following the invasion of Ukraine by
key energy producer Russia.
With Japan relying on oil imports to meet most of its energy needs, the
surge in crude costs recently sent its current account into deficit, she
pointed out.
On the upside, a weaker yen is helpful to Japanese exporters, whose products
turn cheaper for foreign buyers holding stronger currencies.
Fast Retailing, the parent company of Japanese clothing giant Uniqlo, posted
on Thursday a record full-year net profit thanks to the weak yen and a rebound
in demand after virus lockdowns.
The yen's dramatic fall -- from around 115 against the dollar in February to
over 138 in late August -- was a boon for the company, which owns Uniqlo stores
worldwide.
Wall Street and European stock markets were meanwhile also down sharply
following Thursday's US inflation data that solidified expectations of further
big interest rate hikes from the Federal Reserve.
US consumer prices rose 0.4 percent in September compared to August, double
the figure projected by analysts.
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