Japanese yen weakens to 141 against US dollar

Yen losing ground against greenback, hitting 24-year low amid widening policy gap between Bank of Japan, Fed

By Tuba Sahin

ANKARA (AA) – The Japanese yen weakened to 141 against the US dollar, its lowest levels since August 1998, fueled by a widening policy gap between the Bank of Japan (BoJ) and the US Federal Reserve.

While the Japanese central bank is sticking to its ultra-loose monetary policy, the Fed is expected to continue monetary tightening to tame inflation.

Bank of Japan Governor Haruhiko Kuroda has recently vowed to keep monetary policy ultra-loose, saying that external factors driving domestic inflation higher will ease next year.

In contrast, Fed officials have stressed that interest rate hikes are appropriate until inflation eases significantly, bringing the US dollar index up to two-decade highs.

The dollar index pulled back to 109.5 on Tuesday due to traders' profit taking.

In July, the Fed hiked its benchmark interest rate by 75 basis points, the fastest pace of tightening in four decades.

Kaynak: