TheCable

Yen, the Japanese currency, fell nearly one percent to 153.24 against the dollar on Wednesday, the weakest level since 1990.

Despite numerous verbal warnings from Japanese officials about their intention to support the yen against speculative moves in the market, the yen continued to weaken in line with the strengthening dollar.

Helen Given, a foreign exchange trader at Monex, said without a timely response, there will be further declines.

Peter Vassallo, a portfolio manager at BNP Paribas Asset Management, said intervention remains a possibility.

“It’s clearly a US dollar move and Japanese officials can’t really argue its speculators attacking the yen, but intervention remains a possibility,” he said.

“They have been making a lot of verbal noise around intervention, so there may be an element of saving face and wanting to intervene on that basis.”

On April 10, Shunichi Suzuki, finance minister of Japan, said he was watching the market with a high sense of urgency and would not rule out any steps to address excessive moves.

Fumio Kishida, Japan prime minister, during a meeting with US President Joe Biden, warned against the yen’s slide, pledging to act appropriately.

Authorities in Tokyo spent ¥9.2 trillion (approximately $60 billion) in 2022 to support the yen on three occasions.

The yen has encountered renewed downward pressure recently following the Bank of Japan’s decision to terminate the negative interest rate policy in March.