Japanese yen hits 40-year low, reaching levels not seen since 1986
There are fears that Tokyo will be forced to intervene to get the currency back on track.
For the first time in 40 years, the Japanese yen has hit lows like never before. The currency is currently rated at a conversion rate of 162.41 yen per dollar, which is lower than the dip seen in 1986 when the yen hit 162.23 per dollar. This major drop has incited worries that Tokyo will soon have to intervene to get the currency back on track.
As for what's driving the continued drop of the yen, there are a multitude of reasons, including interest rate hikes from the Bank of Japan, but also the ongoing conflict in the Middle-East, which has further teased inflationary concerns and torpedoed global rates outlook.
According to Reuters, it won't be getting any better soon either, as currency experts seem to believe the yen will fall further to around 164 per dollar by early 2027, which is why it's expected that Tokyo and the Ministry of Finance will soon intervene again to support the yen.
