Stock Market: Asian Shares Drop as Yen Gains Ground Against US Dollar

The global stock market has witnessed a big change in recent hours. As per the reports, the Yen has strengthened against the US Dollar, causing Asian shares to slip.

With rumors that the US and Japan may coordinate intervention, the Yen has gained against the US Dollar over the past two sessions and is now trading at roughly 154 per dollar. Tuesday saw a stable Dollar gauge, hovering at values last observed in 2022. Tuesday saw gold and silver trading close to their all time highs as well, say reports.

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As a result of the Yen’s rise, which saw the Dollar drop from highs of 158 to 159 last week to about 153-154 levels, Asian equities have fallen, notably in Japan, since a stronger currency harms the earnings of major exporters, as highlighted by many international media.

As the Yen rose against the US Dollar, Japan’s benchmark fell, causing Asian markets to fall overall on Monday, as stated above and reported by PTI. The Nikkei 225, Japan’s benchmark index, decreased 1.9% to 52,812.45 as Toyota Motor Corp. and other major exporters saw their stock prices decline. Toyota Motor Corp.’s stock price fell 3.2% as a result of the sale.

Japanese exporters often benefit from a weak currency since it increases the worth of their foreign sales. The value of the Dollar has risen against the Yen in recent months. Following signals from authorities in both Japan and the United States that they were ready to step in to bolster the Yen, it has fallen precipitously over the past few days, the report adds further.