www.universalcurrentaffairs.com

Japanese yen slips to 24-year low against dollar.

The Japanese yen has declined to its lowest level against the US dollar since August 1998, prompting the government to weigh action.

The boost in the dollar stems from data suggesting the labour market of the world's biggest economy is recovering.

On Thursday, the currency pair breached the key psychological level of 140 yen against the US dollar.

While many central banks in Asia have hiked the cost of borrowing to mirror the US, Japan has not followed suit.

The Bank of Japan has maintained its ultra-low interest rates to support economic recovery, and this is one of the reasons the yen has fallen in value against the US dollar and other major currencies.

Higher interest rates tend to attract foreign investment. That increases demand for and the value of currencies from countries with higher interest rates.

Source: www.bbc.com

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