Japanese Yen Plummets to 38-Year Low: Urgent Measures Underway

Japanese Finance Minister Shunichi Suzuki announced on Thursday that authorities will take necessary actions regarding currencies after the yen hit a 38-year low against the dollar. Highlighting the adverse one-sided exchange rate movements, Suzuki emphasized the significant impact on the economy and the importance of analyzing the driving factors.

Japanese Finance Minister Shunichi Suzuki said on Thursday authorities would take necessary actions on currencies after the yen slid to a 38-year low against the dollar. "It's desirable for exchange rates to move stably. Rapid, one-sided moves are undesirable. In particular, we're deeply concerned about the effect on the economy," Suzuki told reporters.

"We are watching moves with a high sense of urgency, analysing the factors behind the moves, and will take necessary actions," he said. The Japanese currency has fallen some 2% in June and 12% for the year against a resilient dollar as it continues to be hammered by stark interest rate differentials between the U.S. and Japan.

The yen stood at 160.63 per dollar in Asia on Thursday, remaining a fraction away from the 38-year low of 160.88 hit overnight on Wednesday.