# Yen plunges to 38-year low vs. dollar as markets brace for Japan intervention

> The yen sank to its lowest against the dollar in nearly 38 years on Wednesday, with the dollar reaching 160.82. Wide interest rate gaps between Japan and the US, with US rates at 5.25% to 5.5%, drove carry trades and kept traders alert for intervention by Japan's Ministry of Finance.

- Date: 2024-06-26 · published 2024-06-26T12:00:00.000Z
- Category: macro · region Japan · magnitude medium
- Page: https://feedsoft.ai/events/30022-yen-plunges-to-38-year-low-vs-dollar-as-markets-brace-for-japan-intervention
- Commodities: [Japanese Yen (JPY per USD)](https://feedsoft.ai/c/USDJPY.md)

## Why it matters

Interest rate differentials are keeping the dollar strong against the yen, which raises Japan's import costs for dollar-priced commodities. A sudden intervention would be a key risk to this trend.

## Read by commodity

- USDJPY: bullish ▲

## Sources

- cnbc.com: https://www.cnbc.com/2024/06/26/steady-dollar-sends-yen-to-the-brink-of-160.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.