Japanese Yen Falls to Weakest Level Against Dollar Since 1986

The Japanese yen weakened to 162.19 per U.S. dollar at 1:27 a.m. ET on Tuesday, its lowest level since 1986. The currency traded at 162.27 per dollar in early Asian trading. Finance Minister Satsuki Katayama said the government is ready to take appropriate action against excessive currency moves.

Chief Cabinet Secretary Minoru Kihara stated that officials remain prepared to intervene in currency markets if necessary and will work to build an economy less vulnerable to foreign-exchange volatility. Between April and May, Japan deployed over 11.7 trillion yen, or $72.8 billion, in foreign reserves to support the yen. On April 30 the yen rose to 156.6 against the dollar from 160.39.

The Bank of Japan raised its benchmark interest rate to 1 percent, the highest level in more than three decades. The quarter-point increase was the central bank's first hike since December, when it lifted rates to 0.75 percent.