Japanese Yen Near 1986 Low Amid Rate Hikes and Intervention Concerns

The Japanese yen slipped past the 161‑per‑dollar mark, reaching 161.80, its weakest level since July 2024 and just above the 1986 low of 161.96. The fall followed the Bank of Japan’s decision to raise short‑term rates to 1%, the highest in more than three decades, and broadened expectations that the U.S. Federal Reserve will continue raising rates.

Japan’s finance ministry signaled readiness to take “decisive measures” to curb speculative moves, recalling a May intervention that saw roughly $70 billion of support injected to stabilise the currency. Analysts note that despite past interventions, the yen’s trajectory remains pressured by the wider interest‑rate gap with the United States and persistent trade deficits, raising concerns for import costs and domestic inflation.