Yen falls to 24-year low

Tokyo The Japanese national currency is coming under pressure: one US dollar is equivalent to 135 yen this Tuesday. The Japanese currency has thus fallen to its lowest level since the Asian crisis in 1998. In the past six months, the Asian currency has lost almost 30 percent in value. In the meantime, experts are even warning of another case – and a possible devaluation race for Asian currencies.

Jesper Koll, director of the Japanese financial group Monex, belongs to this camp. He warns of a further devaluation. “The slide has just started, a drop to 150-160 yen to the dollar is becoming more likely.”

This could put other Asian currencies under political pressure because a weak yen will make Japanese exports cheaper and therefore more competitive. The currency experts at Deutsche Bank even warn that the currency and the Japanese financial market could lose “any kind of fundamental valuation anchor”.