Japanese currency falls to 34-year low
By Alimat Aliyeva
The exchange rate of the Japanese national currency has fallen to a record low since 1990 - 151.97 yen per dollar, Azernews reports, citing foreign media outlets.
According to observers, the weakening of the yen is taking place against the background of the continuing gap in interest rates with Western countries, despite the decision of the Bank of Japan (central bank) on March 19 to abandon the long-standing practice of negative interest rates.
In Japan, for a long period, the rate was at 0.1%, which,
coupled with the extremely soft monetary policy of the Central
Bank, was aimed at stimulating the economy and achieving the
inflation target of 2%. In Western countries, interest rates have
been raised in recent years to combat excessive inflation, which
makes investments in assets denominated in dollars and euros more
profitable than investments in products denominated in yen.
The increase in the discount rate of the Bank of Japan from minus
0.1% to 0.1%, according to observers, is considered insignificant,
although this happened for the first time in 17 years. In the
future, according to investors, the growth rate of the indicator
will also be insignificant.
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