The Japanese yen, paired with the US dollar, continues its steep decline. The current USDJPY exchange rate stands at 151.58.
At the same time, the JPY has fallen below its 16-year low against the euro.
Investors are betting that the Bank of Japan will continue implementing its adaptive monetary policy even as borrowing costs rise. Yesterday, the BoJ raised the interest rate for the first time in 17 years. It now stands at zero, compared to the previous -0.1%.
The central bank stated in its commentary that it plans to monitor the situation for some time and maintain relatively loose monetary conditions. The substantial difference between BoJ and US Fed interest rates remains a pressure factor on the JPY exchange rate.
Notably, the USDJPY pair is nearing its multi-year peak of 151.94, which increases the probability of Japanese authorities intervening.