Yen Declined to Its Lowest Point Against the U.S. Dollar

Yen Declined to Its Lowest Point Against the U.S. Dollar

The Japanese yen had a really bad day on Wednesday. The Japanese currency weakened past the 126 yen per dollar mark on Wednesday for the first time in a very long time, more precisely since 2002, while the euro was pinned at a one-month low as investors bought the greenback after hawkish comments by Federal Reserve officials.

On Wednesday, the Bank of Japan’s Governor Haruhiko Kuroda made an interesting comment. He warned that the recent rise in inflation driven by higher import costs could hurt the economy. Haruhiko Kuroda reiterated the central bank’s position. The country’s central bank plans to maintain its current monetary policy.

Yen, dollar, euro, and other currencies 

The Japanese yen led losers against the U.S. dollar with the Japanese currency weakening  0.8% to cross the 126 yen to the dollar level. The yen was trading 0.5% weaker at 126 yen in London. 

The dollar index, which tracks the U.S. currency against a basket of currencies rose 0.1% to 100.52. The dollar index reached its highest level since April 2020. The index added nearly 3% so far in April and is on course for its biggest monthly rise in nine months.

The country’s central bank announced its sharpest rate hike in two decades to curb inflation influenced the New Zealand dollar.

The euro dropped to $1.0821 overnight, its lowest level against the U.S. currency in more than a month, and hovered nearby at $1.0837 in London trading. 

The offshore Chinese yuan and the Australian dollar fell slightly after a surprise plunge in China’s imports. Data regarding the country’s economy influenced investor sentiment. 

Veteran far-left candidate Jean-Luc Mélenchon surpassed expectations. His supporters could decide the final round of this election. However, many supporters may sit the second round out and abstain.