The Japanese yen continued to decline during trading on Wednesday, settling near its lowest level since 1986 against the U.S. dollar.
This performance comes amid the continued strength of the dollar and rising oil prices and U.S. Treasury yields.
The dollar traded at around 163.21 yen, after reaching 163.24 yen during the New York session—its highest level in nearly four decades.
This rise sparked investor concerns that Japanese authorities might intervene to prop up their currency.
Conversely, the dollar held onto its gains against most major currencies.
The euro settled at $1.1401, while the Australian dollar held steady at $0.70, and the New Zealand dollar stabilized near $0.5825. The British pound also fell to $1.3385.
Analysts believe that ongoing tensions in the Middle East are supporting the dollar as a safe-haven currency.
This is especially true given the rise in oil prices.
Brent crude futures touched $91.99 per barrel, while the yield on 30-year U.S. Treasury bonds rose to 5.15%, and the yield on 10-year Treasury bonds reached 4.64%.
Experts expect Japan to intervene again in the foreign exchange market if the yen continues to weaken.
However, they stress that any intervention will not have a long-term effect unless the Bank of Japan continues to raise interest rates or the U.S. Federal Reserve begins to cut them.
Read also:
