The yen fell to the 149 zone against the U.S. dollar on Monday in New York, hitting a fresh 32-year low, as rising inflation expectations strengthened the view that the Federal Reserve will continue aggressive interest rate hikes in the foreseeable future.
Investors bought the dollar against the yen as the Bank of Japan, in contrast to the Fed, is determined to maintain its ultraloose monetary policy, resulting in a wider interest rate differential between Japan and the United States.
The yen was traded at 148.97-149.07 to the dollar at 5 p.m. Monday in New York, compared with 148.64-65 late Monday in Tokyo, after it mostly stayed in the upper half of the 148 range and briefly reached 149.09.
Selling of the yen continued throughout the first weekday after U.S. President Joe Biden said Saturday he is "not concerned" about the strength of the dollar against other major currencies.
In Tokyo on Monday, Finance Minister Shunichi Suzuki warned that Japan could conduct another yen-buying market intervention following the first such move in 24 years last month.
