Yen comes under pressure against major currencies

Japanese authorities may intervene to support yen

On Wednesday, the yen came under pressure against most other major currencies, although Japanese authorities said they could step in to support it, while the Australian dollar tumbled after data showed declining inflation in May.

The Japanese currency has been impacted by market expectations that the BOJ will keep interest rates very low, while other central banks have tightened their monetary policy to curb inflation, leading to speculation about whether and when the central bank will intervene to stop the fall of the yen.

Japan’s Deputy Finance Minister Masato Kanda told reporters Wednesday, “We will monitor the situation with a high degree of sensitivity and will respond accordingly in case of excessive movements” in the foreign exchange market.

Yen falls to lowest level in seven months

The yen fell to 144.2 against the dollar today, Wednesday, to its lowest level in seven months, and also to its lowest level in 15 years to 157.94 against the euro.

Currency Analyst at Commonwealth Bank of Australia Carol Kong said that the yen is expected to continue to fall against the dollar, which means that the likelihood of intervention by the Japanese Ministry of Finance in the foreign exchange market has increased. The Ministry of Finance of Japan instructs the Bank of Japan.

Meanwhile, the Australian dollar fell to a three-week low of 0.6618 per dollar after domestic consumer price inflation slowed to a 13-month low in May.

The Australian dollar fell 0.67% to 0.6641 against the dollar in recent deals. The New Zealand dollar fell 1.04% to hit 0.6098 against the dollar.

The euro fell to 1.0950 against the dollar. The British pound fell to 1.12733 against the dollar. The Swiss franc fell 0.16% to hit 0.89505 against the dollar.