The yen has fallen in price to a new, 32-year low. The dollar exchange rate against the Japanese yen on the international forex market rose by 0.07% to 150 yen per dollar, according to trading data as of 10:17 MSC. This became the highest value since July 1990.

Since January 2022, Japan’s currency has depreciated by about 30%. The main reason for the fall of the Japanese currency against the dollar was the divergence between the super-soft monetary policy of the Bank of Japan and expectations of further tightening of the US Federal Reserve policy in order to stop the growth of inflation, which reached the maximum for four decades.

Japan’s policy rate has remained negative since 2016. The local central bank is pursuing an extremely loose monetary policy, keeping the lending rate effectively at minus levels to stimulate the economy. At the meeting in July, the Bank of Japan once again kept the discount rate at a negative level (-0.1%).