Yen sinks to 34-year low past 160 per dollar
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The yen sank to a new 34-year low past 160 per dollar on Monday after a forecast-beating US inflation reading dented expectations for US interest rate cuts this year. The greenback bought 160.17 yen in morning trade -- its weakest since 1990 -- fanning speculation that Japanese authorities would step in to support their currency. Friday's forecast-beating reading on the personal consumption expenditures (PCE) index came after the Bank of Japan (BoJ) refused to tighten monetary policy further at its meeting last week. Observers were skeptical that intervention would have much of an impact. The advance in the US PCE followed a third straight jump in the consumer price index, leading investors to revise their outlook for how many interest rate reductions there would be this year. They now expect just one, having priced in as many as six at the start of 2024. The BoJ has been a global outlier in sticking to an ultra-loose policy while other central banks pushed rates up as they fought against surging inflation. The BoJ called time on negative rates last month with its first rise in borrowing costs in 17 years as inflation finally settled around two percent after the "lost decades" of deflation and stagnation.

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https://www.legit.ng/business-economy/economy/1589953-yen-sinks-34-year-160-dollar/