The yen reached its lowest level against the euro since 2008 amidst speculation that the Bank of Japan will maintain its accommodative monetary policy even after ending the negative-interest-rate policy. This drop in Japan’s currency, which hit 164.35 per euro before slightly recovering, comes as the yen also weakens against the dollar, heading towards levels not seen since 1990. The yen’s continued decline this year, with a 7% loss so far, has positioned it as the weakest performer among the Group-of-10 currencies.
Investors are closely monitoring the Bank of Japan’s stance on monetary policy, as the decision to end the negative-interest-rate policy raised expectations of further stimulus measures. The yen’s depreciation against major currencies like the euro and the dollar reflects concerns about Japan’s economic recovery amid the ongoing pandemic. This significant weakening of the yen could have implications for Japan’s export-dependent economy and may impact global currency markets.