Deep fall imminent – ​​central bank sticks to zero interest rate

Tokyo The turnaround in interest rates in the USA and Europe is putting further pressure on the yen: the Japanese national currency threatens to depreciate against the dollar to its lowest level in 25 years. On Wednesday alone, the rate fell by 2.4 percent: one dollar was worth 144.94 yen. Already on Tuesday, the Asian currency reached its weakest value since August 1998. Since the beginning of the year, it has lost 20 percent.

The mechanism behind the devaluation: The more the markets expect further interest rate hikes, the more the yen is weighed down as investors tend to invest in currency areas with higher interest rates.