The Japanese yen plunges to its lowest level in 24 years

The Japanese yen plunged to a 24-year low against the US dollar on Tuesday, amid a stark contrast between the Bank of Japan’s ultra-loose monetary policy and the US Federal Reserve’s determination to aggressively raise interest rates to stem runaway inflation.

The yen fell 1.1 percent to 136,455 against the dollar, its lowest level since October 1998, extending losses that have already lost more than 18 percent of its value against the greenback this year.

The yen’s declines came after the Bank of Japan on Friday dashed any expectations of a change in monetary policy and continued to stand-alone among other major central banks in pledging ultra-loose monetary policy.

The yen also fell 1.3 percent against the European currency to 143.78 per euro, its lowest level since the ninth of June.