The yen on Thursday dropped to the lowest level against the dollar since 1990 after US inflation data indicated more aggressive interest rate hikes from the Federal Reserve.
One dollar was worth 147.67 yen following the stronger-than-expected inflation number, which comes as Japan's central bank holds off from hiking interest rates.
"There are two key reasons behind its rapid weakness. The first is the growing divergence in monetary policy between the US and Japan," she told AFP. Kong said the yen had been hit hard also by a collapse in Japan's current account balance after oil prices surged following the invasion of Ukraine by key energy producer Russia.With Japan relying on oil imports to meet most of its energy needs, the surge in crude costs recently sent its current account into deficit, she pointed out.
Fast Retailing, the parent company of Japanese clothing giant Uniqlo, posted on Thursday a record full-year net profit thanks to the weak yen and a rebound in demand after virus lockdowns.
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