Japan’s yen fell to its weakest level in 40 years against the US dollar, intensifying speculation that Tokyo may intervene again to slow the currency’s decline.
The yen weakened past the 162-per-dollar level in Tokyo trading on June 30, crossing that mark for the first time since 1986. Reuters reported the currency touched 162.41 per dollar, while the Financial Times also reported that the yen had weakened beyond ¥162 to the dollar, marking a 40-year low.
The slide has put Japan’s financial authorities under renewed pressure, although officials have so far kept their public message largely unchanged. Finance Minister Satsuki Katayama said Japan remained ready to respond appropriately to currency movements at any time, adding that such action could include decisive steps in line with recent discussions with the United States.
Chief Cabinet Secretary Minoru Kihara also said the government would work to build an economic structure more resilient to foreign exchange swings, while remaining prepared to act in the market if necessary. He declined to comment on specific exchange-rate levels.
The yen’s fall has raised questions over whether Japan’s unofficial threshold for action has shifted. Analysts cited by Reuters said Tokyo may be more reluctant to defend the currency at current levels, especially after earlier rounds of intervention failed to reverse the broader trend. Some market participants now see the 163-165 range, rather than 162, as the next key zone to watch.
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