Yen hits 40-year low in historic slide rattling Japan as Japan says ready to act

business currencies

The Japanese yen has fallen to its weakest level against the U.S. dollar since 1986, a milestone that has generated unease in Japan. The currency reached its lowest level against the dollar on Tuesday.

In London trade on Monday, the yen sank past 161.96 per dollar for the first time since 1986 after trading near that level for about a week. The currency further slid to 161.98 versus the U.S. dollar in New York trading on June 29, breaching the 161.95 mark touched in July 2024.

The yen also weakened against most other Asian and G-10 currencies. This trend comes amid concerns over the Japanese government's possible pushback against Bank of Japan rate increases.

These developments have left investors and traders on high alert for possible intervention from Japanese authorities.

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