economy
Yen slides past 161 against the dollar, nearing 40-year low and reviving intervention bets
On Thursday the yen saw a sharp depreciation a high of 161.80, its weakest since July 2024.
TL;DR
- The yen dropped below the 161 level against the U.S. dollar on Thursday, nearing a 40-year low.
- This sharp depreciation has revived speculation that Tokyo may intervene to support the currency.
- Despite over $70 billion in interventions in May and a recent rate hike by the Bank of Japan, the yen remains under pressure.
- Experts attribute the yen's weakness to structural factors, including high U.S. Treasury yields and Japan's growth-focused policies.
- While a weaker yen boosts exports, it also fuels concerns about imported inflation and reduced household purchasing power.