The USD/JPY pair has surged to a new peak as the Japanese yen undergoes a significant decline against the US dollar. The current exchange rate for USD/JPY stands at 150.50.
This unexpected development is attributed to the release of robust inflation figures for January in the United States. The stronger-than-expected data has diminished the likelihood of an early interest rate cut by the Federal Reserve in 2024, resulting in a strengthened USD. Consequently, the dollar has exerted pressure on other currencies, with the yen being the first to bear the impact.
Japanese authorities express concerns about the substantial depreciation of the JPY exchange rate, emphasizing potential adverse effects on the country’s economy. The year 2024 is proving to be particularly challenging for the yen.
Although the Japanese yen has not yet reached new lows, it is worth noting that in October 2022, the USD/JPY pair reached the 151.94 mark. During that period, the government intervened for the first time in 32 years to support the national currency.
The post JPY Experiences Unexpected Plunge: Overview for February 14, 2024 appeared first at R Blog – RoboForex.