Japanese yen falls to 40‑year low against the dollar, prompting possible intervention

Japanese yen weakened to near a 40‑year trough, trading around 162.4 per dollar, the weakest level since December 1986. Finance Minister Katajama Szacuki said the government is "always ready" to act and could take decisive steps if exchange‑rate volatility becomes excessive, a view echoed by cabinet officials. Analysts note that while an open‑market intervention is not imminent, the probability rises if the pair moves into the 163‑165 yen per dollar band.

The dollar’s rally also pressured other currencies, with Hungary’s forint slipping to about 312.6 per dollar and crossing its 30‑day moving average. Analysts linked the forint’s decline to the same dollar strength and noted mixed effects on inflation, import costs and export profitability.