The yen dropped to a 24-year low against the dollar past 140.

The yen fell to its lowest in 24 years once morest the dollar today, breaking past 140 yen as investors sold the yen and bought the dollar. Amid the opposite monetary policy of the US and Japan

As of 11:40 p.m. Thai time, the yen weakened 0.77% to 140.03 once morest the dollar.

The dollar was supported by the view that The US Federal Reserve (Fed) is raising interest rates to curb inflation. Contrary to the Bank of Japan (BOJ), which continues to use a special monetary easing policy. This will widen the interest rate gap between the US and Japan.

Cleveland Fed Chairman Loretta Mester said the Fed needed to continue raising interest rates. before they can relax measures to combat inflation.

Ms Maester stated that The Fed should raise interest rates above 4% by early 2023 and keep rates at that level for some time.

In addition, Ms Mester said the Fed is unlikely to cut interest rates next year.

Ms Mester’s remarks countered market expectations that the Fed will cut interest rates in the fall next year.

The latest CME Group’s FedWatch Tool indicates that investors are weighing up 76.0% that the Fed will raise interest rates 0.75% to 3.00-3.25% at its Sept. 20-21 meeting, weighing only 24.0%. The Fed will raise interest rates by 0.50%

If the Fed raises interest rates by 0.75% in September, it will raise interest rates by 0.75% for the third time following raising 0.75% in both June and July.

Investors will keep an eye on the number of non-farm payrolls for the month of August tomorrow. While analysts predicted that The number of jobs added was just 300,000 following a 528,000 increase in July.

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