The Japanese yen falls to 2024 lows after the end of negative rates.

The Japanese yen fell to lows not seen since 2024, marking a new stage in the economic landscape of the Land of the Rising Sun. This drop occurred after the Bank of Japan ended its regime of negative interest rates, becoming the latest central bank to abandon this policy in the world. The Bank of Japan's decision to end these negative rates surprised many analysts, and the market reaction was immediate. The yen weakened significantly against the dollar, reaching its lowest level in almost three years. Currency traders focused on the gap that still exists between Japanese and US interest rates, which has contributed to the depreciation of the yen. Bank of Japan Governor Kazuo Ueda emphasized the importance of maintaining accommodative conditions to support the economy, despite the risk of price increases. Some have interpreted this stance as a signal that aggressive rate hikes are not expected in the short term. Analysts agree that the weakness of the yen could persist in the coming months, especially as markets focus on the upcoming Federal Reserve meeting in the United States. Global uncertainty and the strength of the US economy have contributed to pressure on the yen, which has lost its appeal as a safe haven for investors. Despite initial expectations that the yen could outperform other currencies this year, the reality has been different. The Bank of Japan's move has had a limited impact on the currency's strength, and this trend is expected to continue in the near future. In summary, the Bank of Japan's decision has had an immediate effect on the foreign exchange market, with the yen falling to multi-year lows. Despite the efforts of the Japanese central bank, the strength of the dollar and the US economy will continue to exert pressure on the yen in the coming months. Investors are watching closely for the next monetary policy decisions of the Fed and how these will affect the yen and other international markets.