The Japanese yen falls to its lowest level against the dollar since 1986, breaching the 162.00 mark amid policy divergence.
The Japanese yen slumped to a fresh four-decade low against the US dollar, with USD/JPY surpassing 162.00 in early Asian trading on Tuesday. The move extends the yen’s decline as markets price in sustained monetary policy divergence between the Federal Reserve and the Bank of Japan.
Prior to the breach, USD/JPY had hovered near 160.00, a level last seen in 1990. Analysts had flagged 162.00 as a critical psychological threshold, with some expecting potential intervention by Japanese authorities to stem further weakness.
The yen’s slide reflects expectations of prolonged US interest rate hikes alongside the BoJ’s ultra-loose policy stance. No immediate market reaction was reported beyond the initial breach.