The Japanese Yen Is at a 40-Year Low. Here's Why that Matters
- On Wednesday, the Japanese yen traded near 162.80 against the dollar, marking its weakest level since 1986. The decline has revived speculation that Tokyo authorities may soon reenter the market to bolster the currency.
- Bank of Japan Governor Kazuo Ueda faces the spectacular results of experiments started 40 years ago, with strategists describing the yen's weakness as a consequence of Japan's 'Frankenstein' economy built on decades of ultra-loose monetary policy.
- Authorities spent a record 11.7 trillion yen in April and May buying currency to slow the slide. Experts warn such interventions treat symptoms rather than the disease of excessive public debt.
- Prime Minister Sanae Takaichi's government faces difficult tradeoffs, as a weaker yen lifts import prices and squeezes household budgets. Rising costs threaten to fuel inflation expectations despite her energy subsidies.
- Investors suggest a widening credibility gap between the Federal Reserve and the Bank of Japan drives the yen's decline toward 170 per dollar. Treasury Secretary Scott Bessent has left the door open to U.S.-Japan coordination.
21 Articles
21 Articles
The Japanese currency has fallen to just over 162 yen per dollar this week, the lowest level since December 1986.
Yen Plummets to 40-Year Low; Japanese Authorities’ Market Intervention Proved Effective. As the value of the Japanese yen fell to its lowest level in 40 years, an official from Japan's foreign exchange authorities assessed that the government's intervention in the foreign exchange market was effective. In addition, they stated that they are in close communication with the U.S. government regarding foreign exchange market issues.
The Japanese yen is at a 40-year low. Here’s why that matters
The Japanese yen has dropped to a 40-year low against the US dollar, putting investors on watch for potential government intervention by Japan that could ripple through US stocks, the Treasury market and the broader global economy.
The Japanese yen is on Tuesday, June 30, 2026, against the US dollar at the weakest level for four decades ... The post yen to 40-year low: Japan's currency crisis is intensifying existentially – this is also true of Germany's appeared first on Apollo News.
Bank of Japan's monetary monster is finally turning on its maker
TOKYO – As the yen staggers back to 1986 levels at around 162 to the dollar, the financial Frankenstein Japan began stitching together that same year is returning to upend the economy in 2026. The timing couldn’t be worse: traders are now asking whether 170 or even 200 is next. The experiments of 40 years […] The post Bank of Japan’s monetary monster is finally turning on its maker appeared first on Asia Times.
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