Archive · 22 Jul 2026
Japan Warns of Bold Action as Yen Hits 38-Year Low
The Japanese yen has become very weak, reaching its lowest point in 38 years.
The government is warning that they might take strong actions to support the yen, but the market isn't convinced.
The yen's weakness is due to tensions between the US and Iran, which are making oil prices go up, and concerns about Japan's economy.
The government has spent a lot of money trying to support the yen, but it hasn't worked so far.
Experts think the yen might get even weaker if tensions continue to rise.
The yen hit 163 per dollar, the weakest level since 1986, due to US-Iran tensions and market skepticism.
Japanese authorities spent ¥11.73 trillion ($71.9 billion) in April-May to support the yen, but it remains weak.
Minister of Finance Satsuki Katayama warned of bold action if necessary, but the market is skeptical.
Heightened Middle East tensions typically support the dollar versus the yen through higher oil prices.
Experts predict the yen could reach 165 per dollar if US-Iran tensions worsen.
- Who
- Japanese financial authorities, Minister of Finance Satsuki Katayama, Marito Ueda (SBI FX Trade), Rodrigo Catril (National Australia Bank)
- What
- The yen slid past 163 per dollar, the weakest level in 38 years, amid US-Iran tensions and market skepticism towards government interventions.
- When
- The yen hit 163 per dollar overnight, with comments from Katayama made on Wednesday.
- Where
- Japan, with implications for global currency markets.
- Why
- Due to renewed US-Iran tensions pushing oil prices higher, fiscal concerns in Japan, and expectations of Fed rate hikes.
Market Skepticism
Government Determination
Effectiveness of Government Warnings
Market Skepticism
The market is skeptical about the government's warnings due to repeated messages and high associated costs of intervention.
Government Determination
The government is determined to take bold action if necessary to support the yen.
- Current Yen to Dollar Rate
- 163.14
- Last Intervention Period
- April 28 - May 27
- Amount Spent in Last Intervention
- ¥11.73 trillion ($71.9 billion)
- Lowest Yen Level in Decades
- 163 per dollar (since 1986)
- Primary Concern for Yen Weakness
- Fiscal expansion in Japan and expected Fed rate hikes