Japan’s Yen has fallen to a 34-year-low against the U.S. dollar, sparking calls for the Japanese government to intervene in the currency market.
The Yen was last trading at 151.22 against the American dollar after paring some losses, its lowest level in more than three decades.
The ailing currency has reignited calls from economists and investors for Japanese government officials to intervene and prop-up the Yen.
Following a meeting of the Bank of Japan, the government issued a statement saying that the Yen’s decline is being watched “closely and urgently.”
The Bank of Japan has said that it is prepared to respond with monetary policy measures should the Yen’s decline worsen.
The Yen’s drop in value has come after Japan’s economy fell into a recession at the end of 2023, contracting for two consecutive quarters.
At the same time, the country is struggling with inflation after decades of experiencing deflation.
Earlier in March, the Bank of Japan ended its policy of negative interest rates and abolished its yield curve control policy as it tries to address inflation.
However, those moves sparked a further selloff in the Yen.
Some economists note that there have been some positive developments from the Japanese currency’s weakness, such as increased tourism and a stock market rally.
