FX.co ★ US dollar soars above 154 yen

Some consider a rise in the US dollar to be a reason for happiness. However, the Japanese yen has recently reached a new 34-year low of 154 yen against the US dollar. This is the lowest level since 1990.

On Forex, an international currency market, the greenback’s price jumped by 0.74% to 154.41 against the Japanese yen. A bit later, the growth totaled 0.64%, and the US currency was trading at 154.27. It is a real roller coaster for traders.

In fact, there are several reasons for the greenback’s appreciation. Thus, the US dollar advances amid high expectations from the Federal Reserve. It is likely to keep the key interest rate at a high level to maintain control over inflation. By the way, the US currency is becoming more and more attractive as a safe-haven asset.

Chris Turner, Global Head of Markets and Regional Head of Research for UK & CEE, explains such attractiveness by good liquidity, high deposit rates in the US, and the country's energy independence. If the US dollar touches 155 against the Japanese yen, the Bank of Japan may intervene in the market.

In general, during the last year, the yen has lost almost 15% because of a considerable difference between the policies conducted by the Bank of Japan and the Federal Reserve. Thus, the BoE was long holding key rates at the lowest level, while the Fed was actively raising them.