Japanese yen weakens to 160 against the U.S. dollar for the first time since 1990
The yen briefly touched 160.03 against the dollar, the weakest level since April 1990 when it touched 160.15, according to FactSet data.
The currency has languished alongside continued strength in the greenback as Federal Reserve rate cut expectations get pushed back. The Fed's preferred inflation gauge came in slightly hotter than expected on Friday, underlining the difficulty the U.S. central bank faces in tackling sticky inflation.
The yen has traded around 150 or weaker against the dollar since the Bank of Japan ended its negative interest rate regime in March. On Friday, the central bank held rates and slightly raised its inflation expectations for fiscal 2024.
In a press conference Friday, BOJ Governor Kazuo Ueda said exchange rate volatility would only affect monetary policy if there was a "significant" impact on the economy, according to a Reuters translation of his remarks.
"If yen moves have an effect on the economy and prices that is hard to ignore, it could be a reason to adjust policy," Ueda said, according to a Reuters translation.
