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Yen Drops to Fresh 24-Year Low as US-Japan Policy Gap Weighs

  • Overnight surge in Treasury yields puts pressure on yen
  • Impact of hawkish Fed comments still rippling through markets
Bloomberg business news
WATCH: The yen dropped to its lowest since 1998. Ruth Carson reports.Source: Bloomberg
Updated on

The yen declined to its lowest since 1998, prompting warnings from Japanese government officials, as the yield gap between the US and Japan widened to heap more pressure on the currency. 

It fell as much as 0.5% to 139.68 per dollar in Thursday trading -- a hair’s breadth from the key psychological level of 140, before paring the loss. Some analysts have said a move past that level may trigger government intervention, though economists have repeatedly pointed out the high risk for Japan of any failed attempt to prop up the yen.