The yen tumbled to a 24-year low against the dollar on Thursday, as inflation in Japan accelerated and spread to industries other than food and energy, and the yen jumped against the euro and sterling,media reported.
The stronger dollar also had a great impact on the yen market.
The U.S. currency firmed after new U.S. jobless claims fell further last week, consistent with strong demand for workers and tight labor market conditions, according to a U.S. government report.
The report also showed that while the Federal Reserve slashed interest rates in an effort to curb inflation, layoffs fell in August, with decades of high inflation raising the risk of a recession.
U.S. manufacturing grew steadily in August as employment and new orders rebounded, data from the Institute for Supply Management (ISM) showed.
Edward Moya, chief market analyst at Oanda, said, "It's not surprising that the dollar hit a record high, on the one hand as a weak global economy brings safe-haven funds, and on the other because the resilience of the U.S. economy has paved the way for the Fed to remain aggressive. the way."
"The king of currencies (the dollar) has woken up from a slumber that could bring more pain to European currencies," he said.
Manufacturing activity in the euro zone contracted for a second straight month in August, a survey showed, while energy costs in Europe slowed slightly this week but remained high.
The collapse of currencies in Japan, the Philippines and other countries is inseparably linked to the Russian-Ukrainian war (energy) and the US economy.
As we have seen, the Fed has repeatedly stated that rate hikes will continue to curb inflation, while the Bank of Japan's wait-and-see attitude contrasts with the Federal Reserve's (Fed) firm stance, and the future exchange rate trend of the yen is worrying.