Yen hits 40-year low against U.S. dollar
The Japanese Yen hit its weakest level against the dollar in 40 years, raising the likelihood of government intervention – but while consumer costs are rising, the low yen is boosting exporters’ profits
EXCHANGE RATE ¥ TO U.S. $
¥200
150
100
50
1990
1995
2000
2005
2010
2015
2020
2025
Nov 1986: ¥162.80
Jul 1998: ¥144.66
Government intervention
Oct 2022: ¥148.71
Government intervention
Jun 2024: ¥160.88
Government intervention
Jun 30, 2026: ¥162.40
YEN WEAKNESS
International interest rates
%
Japan
Canada
EU
South Korea
China
UK
U.S
1
2.25
2.4
2.5
3
3.75
3.75
Borrowers of yen invest in high-yielding assets elsewhere
Capital outflows keeps pressure on Yen
Government debt to GDP
%
Japan
U.S
Canada
China
UK
EU*
Korea
*Euro area average
204.4
125.8
110.7
106.9
103.6
87.8
54.4
Highest among major economies coupled with persistent budget deficits
Picture: Getty Images
Sources: Bloomberg, IMF, Trading Economics
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