Currency

The US dollar's relentless ascent reached a 34-year peak against the Japanese yen, propelled by the Federal Reserve's unwavering commitment to higher interest rates for an extended period. This surge has ignited investor caution, as they anticipate potential intervention from Japan to defend its weakening currency.

The Japanese yen experienced a sudden rise against the U.S. dollar, reaching its highest level in three decades following the Bank of Japan's decision to keep interest rates on hold. The central bank's move led to speculation about possible intervention to address the yen's weakness in the foreign exchange market.

The US dollar's surge to a five-month high against major currencies, fueled by stronger-than-expected US retail sales figures, has raised concerns about potential intervention from Tokyo. The Japanese yen continues to languish at its lowest level since 1990, prompting speculation of intervention from Japanese authorities.

The Bank of Japan opted to keep its existing monetary policy unchanged following a two-day meeting on April 26, resulting in the Japanese currency dropping to its lowest level against the dollar in 34 years. The decision by the central bank led to a surge in investors selling the yen and purchasing the dollar, driven by expectations of a continuing interest rate gap between Japan and the United States.

The Japanese yen plunged to multi-year lows against the dollar and euro, raising intervention concerns ahead of the Bank of Japan's policy meeting this week. The euro reached its highest level since 2008, while the dollar neared the 155 level, potentially triggering intervention by Japanese authorities.