Yen falls to 24-year low vs. dollar on rate gap, stocks slide

The yen hit a 24-year low against the U.S. dollar on Wednesday, briefly falling to around 135.60 on expectations of a further widening of the interest rate gap between Japan and the United States.

On the stock market, the benchmark Nikkei index was down for a fourth straight day as investors reacted to a possible U.S. economic slowdown amid prospects that the Federal Reserve will be more aggressive in its rate hikes to fight high inflation.

The 225-issue Nikkei Stock Average ended down 303.70 points, or 1.14 percent, from Tuesday at 26,326.16. The broader Topix index finished 22.52 points, or 1.20 percent, lower at 1,855.93.

On the top-tier Prime Market, decliners were led by oil and coal product, mining, and electric power and gas issues.

© Kyodo News