Japanese Yen Weakens to 20-Year Low

The Japanese yen has lost ground against the U.S. dollar for a 14th straight session, as traders bet on a further divergence between the two countries’ interest rates. Photo: Bloomberg

(Bloomberg) — The yen’s historic run of losses showed no signs of easing Wednesday as it weakened toward 130 per dollar after an overnight rise in Treasury yields.

The currency dropped for a 14th consecutive session — down 0.3% to 129.35 — as traders bet on further divergence between U.S. and Japanese interest rates. A consensus in Tokyo that it would reach 130 against the dollar in coming months looks set to happen even quicker and investors are readying for the chance that policymakers will seek to intervene to the defend the beleaguered currency.