The value of the Japanese yen fell once again.
The Bank of Japan’s decision on Friday to keep its ultra-low interest rates unchanged and to refrain from taking action to boost the yen’s value again caused the country’s currency to reach its lowest level against the dollar in 34 years.
Of course, the bank’s decision on Friday to maintain the benchmark rate between zero and 0.1 percent was already expected, and the Bank of Japan announced that these accommodative financial conditions will be maintained for now.
Kazuo Ueda, the governor of the Bank of Japan, said last week that if the yen’s depreciation becomes so significant that it cannot be ignored, then the central bank will likely change its monetary policy.
Although a weaker yen is better for Japanese exporters, it raises import prices. Accordingly, around 5 p.m. local time on Friday, each U.S. dollar was traded at 156.70 yen.
