The yen briefly dropped to the 160 level against the US dollar in Singapore trading on Monday, setting a new 34-year low in volatile trading amid fears of intervention by Japanese authorities to stem the yen’s slide.
The dollar suddenly topped the 160 yen line for the first time since April 1990 from the 158 yen level, with the market remaining relatively volatile in thin trading as financial markets in Tokyo are closed for a national holiday. The US currency then quickly fell back to the lower 159 yen range.
The yen also fell to the 171 level against the euro, the weakest since the single currency was introduced in 1999.
The Japanese currency remains under heavy selling pressure which increased after the Bank of Japan on Friday decided to leave its monetary policy unchanged at a policy board meeting.
BOJ Governor Kazuo Ueda said at a press conference after the meeting that he currently sees no major impact of the yen’s recent sharp decline on prices, even as a weaker yen raises the cost of imports.
Market participants are now awaiting the US Federal Reserve’s two-day policy meeting starting on Tuesday.
Related coverage:
The BOJ downplays the weak yen impact, but keeps the door open for rate hikes
Japan ready to take necessary steps on yen movements: finance chief
