Tokyo, June 13 (UNI/Sputnik) Japan’s national currency, the yen, fell to its lowest against the US dollar since October 1998 and traded at 135.2 to the dollar on Monday, as stocks s are collapsing in anticipation of monetary tightening by the inflation-boosted Federal Reserve, Japanese media reported.
The yen accelerated its fall to 135.2 to the U.S. dollar on expectation of a further widening of the interest rate differential between Japan and the United States, Kyodo news agency said. The US dollar was trading between 134.90 and 134.93 yen at 3 p.m. Tokyo time (0600 GMT), from 133.59-134.45 yen on Friday.
The 225-number Nikkei Stock Average has tumbled 836.85 points to 26,987.44 since Friday, losing just over 3%, while the Topix index is down around 2.16%, or 42.03 points, and averaged 1,901.06 over the same period, according to the report. Heavy machinery, electronics and transportation equipment were among the industries in which stocks posted the steepest decline.
Inflation in the United States has increased in recent weeks, with fuel and food prices rising the most. On Sunday, US President Joe Biden said it was the “by-product” of helping Ukraine fight Russia. Economic analysts expect the US Federal Reserve to continue to tighten the nation’s monetary policy through the summer and fall.
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