The yen hit a 37-1/2 year low against the dollar

The Japanese yen fell below 160.381-to-dollar on Wednesday (June 26) in overseas foreign exchange markets, marking its lowest level in 37 1/2 years since December 1986, Kyodo News reported.

Xinhua News Agency reported that Japanese media quoted analysts as saying that the difference in monetary policies between Japan and the United States is the fundamental reason for the continued sharp depreciation of the yen against the dollar.

Us Federal Reserve officials recently revealed their cautious attitude to interest rate cuts in a speech, leading to market expectations of the Fed's interest rate cuts delayed. At the same time, this month's monetary policy meeting of the Bank of Japan announced the plan to reduce the purchase of government bonds is less than market expectations, Japan temporarily maintains a loose monetary environment, and investors expect that the spread between Japan and the United States will continue, leading to an increase in selling yen to buy dollars.

On April 29, when the Yen-dollar exchange rate fell below the 160-to-1 mark in the foreign exchange market, Japan's large-scale intervention led to a rapid rise in the yen exchange rate, and investors are widely expecting that the Japanese government will intervene in the foreign exchange market again.

According to Japanese media reports, due to Japan's trade deficit and other reasons, the yen selling operation may be difficult to end in the near future, and the yen will continue to weaken.