Industry Odisha Bureau, Aug 6: Japan’s national currency ‘Yen’ has reportedly fallen to its weakest level since 1986 by breaching the 160-per-dollar mark for the first time.
Media reports, citing views of the analysts and experts in financial matters, have stated that, “As Dollar-Yen has been the world’s second most-traded currency pair, sharp movements related to this currency pair have far-reaching implications for global trade and financial markets. Such a grim scenario has, thus, recently prompted the USA to intervene and prop up Yen.”
Media reports, citing views of the analysts and experts in financial matters, have also stated that, “Decades of unconventional monetary easing have also constrained Japan Government’s ability to raise interest rates aggressively to defend the ‘Yen’ without unsettling financial markets.”
Media reports, citing views of the analysts and experts in financial matters, have further stated that, “Yen’s current weakness is also against the British Pound as the Yen touched a record low of around 219.6 in July this year. Yen has also weakened against the Australian Dollar, the New Zealand Dollar, the Euro, and the Swiss Franc. The average Dollar-Yen exchange rate in Tokyo has weakened from around 104 Yen- per-Dollar in January 2021 to around 163 in July 2026, marking a depreciation of more than 50%”.
International media reports claimed that, “The Yen has continued to weaken despite the Bank of Japan raised its benchmark interest rate to 1% in June this year. The raised benchmark interest rate is dubbed to be the highest level since the 1990s. Similarly, Japan’s 10-year Government Bond yield rose from 0.4% in early 2023 to 2.6% by the second quarter of 2026. Despite that, it remained well below the US 10-year Treasury yield of 4.4%.”
Media reports, citing views of the analysts and experts in financial matters, have opined that, “Japan’s heavy dependence on imported energy has emerged as another source of pressure being mounted on the Yen. Roughly 90% of Japan’s crude oil is imported from the currently trouble-torn West Asia region passing through the Strait of Hormuz hurdle. Since energy imports are largely priced in USDs (American dollars), Japan’s higher import bill increased demand for the US currency, and that too added downward pressure on the Yen.”
