Yen Slides To TwoDecade Low As InterestRate Gap Widens
(Bloomberg) - The Yen hit a 20-year low on Tuesday against the dollar, helping to widen the gap between Japanese and US yields, sparking speculation of a possible intervention. Bloomberg most read The currency fell 0.8% against the dollar to 132.96, the lowest level since April 2002, placing the benchmark Treasury yield at a close above 3%. It is falling to a seven-year low against the euro and the Australian dollar, and is putting pressure on the Japanese government to react to rising prices. Japanese businesses and households are increasingly complaining about the negative effects of the weaker yen as costs and electricity bills rise. Further cuts will jeopardize the consensus between the central bank, which has decided to cut inflation, and the government, which is desperate to avoid a cost-cutting crisis ahead of next month's national elections. Rewrite the yen's historic decline from the Global Monetary Strategy Takuya Kanda, executive director of the Gaitame.com Res...