The Japanese yen has reached its lowest level against the US dollar in nearly three years, trading at 149.35 yen per dollar. This marks a significant drop for the yen, with its last weakest point occurring in October 2022 when the Japanese government last intervened in the currency market. This shows a trend of yen depreciation, signifying the currency’s decreased value in comparison to the US dollar.
However, despite the yen’s decline, experts argue that the likelihood of government intervention is not as high as market players may perceive. This is because any potential intervention would require the approval and understanding of the US government. Analysts suggest that the bar for such intervention is set higher than anticipated. This indicates that the Japanese government might need to navigate diplomatic channels and gain the support of US authorities before intervening in the currency market.
In summary, the Japanese yen has weakened significantly against the US dollar, reaching its lowest level since October 2022. This demonstrates a trend of yen depreciation, indicating a decrease in its value relative to the US dollar. Nevertheless, the likelihood of government intervention to address this issue is debated among experts, as it would require the understanding and approval of the US government, suggesting a higher threshold for such action.