The Japanese yen reaches 150 against the US dollar

The Japanese Yen It weakened above 150 against the US dollar, a key psychological level, and reached levels not seen since August 1990.

The Bank of Japan’s two-day meeting is scheduled for next week. Policy makers have ruled Raise the interest rate to defend against further currency weakness.

Thursday, Japan Government debt yield for 10 years It broke through the 0.25% cap the central bank had pledged to defend – last time at 0.252%. The yield on the 20-year bond also rose to its highest level since September 2015.

Bank of Japan too announce Thursday’s emergency bond purchases. It offered to buy 100 billion yen ($666.98 million) of Japanese government bonds with maturities between 10 and 20 years and another tranche of 100 billion yen with maturities between 5 and 10 years.

The central bank has repeatedly pledged to buy an unlimited amount of bonds at a fixed rate in order to set the 10-year government bond yields at 0.25% as part of its stimulus measures for the economy.

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On Thursday, Reuters reported that Japanese Finance Minister Shunichi Suzuki said the government would take “appropriate steps against excessive volatility.”

“Recent rapid declines in the Japanese yen are undesirable. We can never tolerate the excessively volatile moves driven by speculative trading,” he said.

‘Don’t destabilize’ levels

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