Yen moves toward

The yen is far from hitting a 24-year low in a drop that threatens to turn what some see as an opportunity for Japan into an economic and financial headache for Asia and possibly beyond.

At noon, the yen stood at 134.45 yen against the dollar, bringing it closer to the 135.15-yen level Japan reached during the turmoil of the 2002 banking crisis and the lowest levels of over 145 yen in 1998 during the Asian financial crisis.

The yen began its decline in March, falling from the tight gap it had occupied for the previous six years because of the Bank of Japan’s decision to tighten its monetary policy.

As interest rates rise in the US and elsewhere, traders focus on the widening gap between those countries’ government bond yields and Japan’s.

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