Yen Hits 40-Year Low as Rate Gap with US Deepens

The Japanese yen touched 162.41 per dollar on June 30, 2026—its weakest level since 1986. The currency has now declined for four consecutive quarters as the Bank of Japan keeps rates near zero while the Federal Reserve maintains restrictive policy. That rate differential fuels carry trades that suppress yen demand. Unilateral intervention by Japan's Ministry of Finance offers only temporary relief against such a wide spread; sustained yen strength requires Fed cuts or BoJ rate hikes neither appears imminent.