Japanese Yen Drops to 24-Year Low against US Dollar

The yen plummeted to a 24-year low as US Treasury yields rose overnight, putting additional pressure on the Japanese currency.

On Thursday, the dollar gained ground across the board, especially versus the yen, as investors prepared for rising U.S. interest rates while anticipating stable Japanese rates.

A 0.4% drop saw the yen trade at 139.59 to the dollar on Thursday, a new 24-year low since 1998. Next for FX watchers is the psychological level of 140, which may trigger intervention from officials, said Bloomberg.

The benchmark Treasury yield rose above 3.2% as the effects of the hawkish Federal Reserve Jackson Hole symposium continued to reverberate through the markets.

Inflation in the Euro zone reached a new record high of 9.1% in August. This was primarily due to rising energy prices, according to preliminary data from Europe’s statistical office Eurostat on Wednesday.

The rate exceeded forecasts, with economists polled by Reuters expecting a rate of 9%. This also weighed yesterday on global bond prices (31 Aug).