The exchange rate of the Japanese yen against the US dollar continues to strengthen, reaching 155 yen, which represents a noticeable improvement after falling to the lowest value in the last 34 years, which exceeded 160 yen. Market experts suggest that this strengthening may be the result of currency intervention carried out by the financial authorities of Japan, although official information about this has not yet been received. The main reason for the continued decline in the national currency is the continuing gap in interest rates between Japan and Western countries, where rates were raised as part of the fight against inflation. At the same time, in Japan, where the negative effects of deflation are being fought, the authorities are striving to achieve the 2% inflation target by stimulating the economy through low rates. This makes investments in assets denominated in dollars and euros more attractive than investments in products denominated in yen. On March 19, the Japanese regulator for the first time in a long time abandoned the practice of negative rates, setting them at a level from 0% to 0.1%. However, according to experts, the pace of further rate increases will be negligible. Against the background of the continued weakening of the yen, investors were closely monitoring the possibility of currency intervention by the Japanese financial authorities. Finance Minister Shunichi Suzuki noted that he does not rule out taking any measures to counter excessive currency fluctuations.
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