Why the Japanese Yen Is at Its Weakest in 40 Years

The yen hit its lowest level since 1986 on June 30, 2026—162 yen per US dollar. Japan keeps interest rates near zero; the US keeps theirs high. That gap encourages traders to borrow cheap yen, convert to dollars, and pocket the difference. This erodes yen demand. Japan tried stepping in to prop it up, but it didn't last. Real strength needs either the US to cut rates or Japan to raise them. Neither is happening soon.