finance
Japan's Yen Falls to Weakest Level Against Dollar Since 1986
The Japanese currency traded at 162.7 per dollar early Wednesday. Finance Minister Satsuki Katayama said authorities stand ready to intervene. Japan holds the largest foreign portfolio of US Treasurys.
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Japan's yen fell to its weakest level against the dollar since 1986, Insider reported. Early on Wednesday the currency traded around 162.7 per dollar. Finance Minister Satsuki Katayama said on Tuesday that Japan stood ready to act against excessive currency moves.
She added that authorities would take "appropriate action" on currencies at any time as needed. Japan's Ministry of Finance data showed holdings of foreign securities fell by about $75 billion in May. Japan remains the largest foreign holder of US Treasurys.
Higher US yields, the Iran war, and carry trades continue to weigh on the yen, Insider reported. The yen has been under pressure as US interest rates remain well above Japan's. The war in Iran has added pressure as energy costs mount for Japan, a major oil importer.
Japan's booming stock market has also contributed to yen weakness as overseas investors hedge against further declines. The carry trade briefly unraveled in the summer of 2024 after the Bank of Japan unexpectedly raised interest rates.
