Yen Falls to 2024 Low as Rate Gap Undercuts BOJ’s Historic Hike
- Ueda says conditions should be accommodative for economy
- Attention shifts to Federal Reserve announcement on Wednesday
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The yen slumped to its lowest level in 2024 after Bank of Japan officials ended the world’s last negative interest-rate regime, with currency traders focusing on the gap that remains between Japanese and US interest rates.
The Japanese currency on Tuesday fell as much as 1.2% to touch 150.95 per dollar, the weakest mark since Nov. 16. While BOJ Governor Kazuo Ueda noted in his press conference that risks of prices rising too much could result in a further rate hike, he said it’s important to keep conditions accommodative to support the economy.