Yen Dips Below 139 vs U.S. Dollar To Record Low

Mainichi Japan reported that the yen fell below 139 versus the U.S. dollar in the late afternoon on Thursday, July 14, 2022, setting a new 24-year low due to rising expectations that the Federal Reserve will continue its aggressive monetary policy.

Photo Insert: The Japanese yen dropped to the lower 139 zone, its lowest level since September 1998.

The Japanese yen dropped to the lower 139 zone, its lowest level since September 1998, as selling pressure increased following the start of trading in Europe. The yen traded at 138.42-43 at 3 p.m., according to Kyodo News.

Joe McDonald, writing for the Associated Press (AP) late on the same day, reported that Asian stock markets rallied despite a record-setting US inflation report that hinted at probable interest rate hikes that investors fear could stifle economic development. US futures declined, while oil prices rose.

The benchmark S&P 500 index fell 0.4% on Wednesday following the release of data showing that U.S. consumer inflation increased to 9.1% in June from 8.6% in May.

This was despite the Federal Reserve's three rate hikes this year. Investors are concerned that forceful action by central banks to curb inflation, which is at its highest level in four decades, could derail global economic development.

In a report, Stephen Innes of SPI Asset Management stated, “Growth fears are hitting the markets harder than inflation concerns.”

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