The Japanese yen, paired with the US dollar, is undergoing an active phase of devaluation. The current USDJPY exchange rate is 147.41.
The current levels for the yen are the lowest in the past 10 months. Overall, the yen has lost more than 12% of its value since the beginning of the year. The primary reason for the JPY's decline is the huge difference in interest rates. The Bank of Japan remains committed to an ultra-soft monetary policy, which is exerting substantial pressure on the yen.
Today, the country's chief currency diplomat, Masando Kanda, noted that the authorities are prepared to act if speculative currency movements persist. Earlier, a board member of the Bank of Japan, Naoki Tamura, expressed his intention to maintain the current parameters of the monetary policy, as he requires further evidence of stable inflation growth.
The JPY is also under pressure due to the strengthening of the US dollar. The US currency is on the rise as investors seek safe-haven assets amidst global economic uncertainty.