Yen surpasses 160-per-dollar, reaching lowest point since April 1990

The Japanese yen plunged to its lowest levels since April 1990 on Monday, sparking concerns and speculation in the financial markets. Trading was thin due to a holiday in Japan, but that didn’t stop the dollar from surging to 160.245 yen in a sudden move, catching many traders off guard.

The sharp decline in the yen was attributed to stop-loss orders being triggered at the key 160 level, causing those with long yen positions to scramble to square their positions. This exacerbated the yen’s slide and raised fears of further weakness in the currency.

While the yen’s decline had little impact on the euro and sterling, investors are closely watching for any intervention by Japanese authorities to stabilize the currency. The yen has already fallen nearly 11% this year, prompting concerns about its impact on the global economy.

The Federal Reserve’s upcoming policy review is also a key focus for markets, with expectations of a delay in rate cuts after recent U.S. inflation data. Analysts believe that the Fed may not be as hawkish as previously expected, which could impact the dollar-yen pair in the coming weeks.

Overall, the financial markets are bracing for more volatility and two-way action in the dollar-yen pair until the Fed’s meeting. The uncertainty surrounding central bank policies and global economic conditions is keeping investors on edge, with the potential for further currency fluctuations in the near future.