By Kosaku Narioka
The Japanese yen hit its weakest level against the dollar in 34 years on waning expectations that the Bank of Japan would raise interest rates further, after it dropped its negative interest rate policy last week.
The dollar briefly rose to as high as 151.97 yen, which had not been touched since July 1990, compared with Y151.55 as of Tuesday 5 p.m. Eastern Time. The U.S. currency was recently at Y151.77.
The yen was partly undermined by comments from BOJ board member Naoki Tamura on Wednesday that the central bank would cautiously unwind its easy monetary policy as a virtuous cycle of rising wages and prices is expected to continue.
The central bank ended an eight-year stretch of negative interest rates and unwound most of its unorthodox monetary easing policies last week, saying a new era of stable inflation is in sight in Japan.
Tamura said the bank's decision last week was its first step toward "normalizing" monetary policy and that the central bank would proceed "slowly and steadily" in making policy changes.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
03-26-24 2344ET
