USD/JPY highest since June 1990s

The Japanese yen has hit a new 32-year low. One major question among investors and traders now is: Will the BoJ intervene again this week?

The yen has declined nearly 30% against the dollar this year already as the divergence between the US Federal Reserve’s hawkish stance and the Bank of Japan’s ultra-lose policy. Last month, Japanese authorities conducted their largest-ever currency intervention to support the rapidly falling yen, having spent 2.84 trillion yen for its efforts which yielded a fleeting effect.

The USD/JPY pair has pierced the 149.00 level. At the start of the week, Japan’s top currency diplomat Masato Kanda said authorities would firmly respond to any excessive currency fluctuations.

Each country would respond suitably to an agreement on foreign exchange market moves by the Group of Seven (G7) and G20 meetings last week. Japan’s Finance Minister Shun’ichi Suzuki has also stressed that they will take decisive action against excess forex moves based on speculation.

Suzuki says they are constantly watching forex movements with a sense of urgency. On the American front, the US dollar was softer against a basket of major currencies and sterling jumped on Monday after Britain’s new finance minister ditched most of the government’s mini-budget, while better-than-expected earnings from Bank of America helped to boost risk appetite.