JPY is the worst-performing currency of the quarter. Overview for 27.03.2024

The Japanese yen resumed weakening against the US dollar. The current USDJPY exchange rate stands at 151.75.

The latest economic data from the US has cast doubt on whether the Federal Reserve will decide to lower interest rates soon, which pushed the JPY to a 30-year low. The current levels are the ones at which Japan conducted currency interventions in 2022.

The yen is now at its lowest level since the mid-1990s.

This morning, in their commentaries, the Bank of Japan's monetary policymakers and the Ministry of Finance used very similar language to that in 2020, which preceded interventions. While this may not necessarily occur this time, the probability cannot be completely ruled out.

The yen is becoming the worst-performing currency this quarter among those in demand, even after the Bank of Japan abolished the negative interest rate regime. The reason is the huge difference in the cost of borrowing.