Yen falls to 24-year high as policy gap slide continues

The yen fell to a 24-year low Monday as Japan’s easy monetary policy increasingly stood at odds with developed peers raising rates.

The currency fell more than 0.5 per cent to ¥135.19 to the dollar, the lowest since October 1998, as Treasury yields extended Friday’s inflation-shock driven gains.

The yen has tumbled about 15 per cent this year — the worst-performing major currency — as the Bank of Japan keeps rates anchored to boost a sluggish economy while US yields surge on bets for continued Federal Reserve rate increases.

Friday’s shock US inflation print, which was higher than expected, has heaped pressure on the Fed to intensify monetary tightening, boosting the dollar.

Before it hit, senior Japanese officials delivered a ramped-up warning on the yen’s decline, putting their concern in a written statement for the first time as they seek to keep a floor under the currency.

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