Dollar Hits Its Strongest Level in Decades Against the Yen

The dollar jumped to 162.77 yen on July 1, the strongest since 1986. Japan tried to talk down the move, but markets ignored it. The real reason: U.S. interest rates are much higher than Japan's, making it profitable for traders to bet against the yen. Investors are now watching to see if Japan will step in and force the currency to move.