Overview

• The Japanese yen has weakened to its lowest level in 34 years, prompting speculation of intervention by the Bank of Japan.
• U.S., Japanese, and South Korean officials issued a joint statement on the pressures facing Asian currencies during recent IMF-World Bank meetings.
• Former President Donald Trump commented on the economic consequences of a strong dollar, criticizing past currency deflation practices by Japan and China.
• The Federal Reserve's higher interest rates compared to Japan's near-zero rates have widened the interest rate differential, exacerbating the yen's decline.
• Despite potential central bank interventions, market dynamics and interest rate differences are likely to continue influencing the yen's trajectory.