JPY plummeted unexpectedly. Overview for 14.02.2024

The Japanese yen, paired with the US dollar, has significantly declined. The current USDJPY exchange rate stands at 150.50.

What led to this development? The US released surprisingly robust inflation figures for January. This diminished the likelihood of the Federal Reserve's early interest rate cut this year, bolstering the USD. Consequently, the dollar exerted pressure on other currencies, making the yen the first to suffer.

According to the Japanese authorities, such a substantial depreciation of the JPY exchange rate could have adverse effects on the country’s economy. This year is proving to be exceptionally challenging for the yen.

As of now, the Japanese yen has yet to reach new lows. In October 2022, the pair reached the 151.94 mark. At that time, the government conducted its first intervention in 32 years to support the national currency.