Japanese Yen Hits 40-Year Low at 162 Per Dollar

The Japanese yen hit a new 40-year low on July 1, with one U.S. dollar now buying 162 yen—the weakest level since late 1986. The decline stems primarily from a widening interest rate gap: Japan's benchmark rate stands at approximately 1%, while U.S. rates remain significantly higher, drawing greater investor demand for dollars over yen. Additionally, Japan's reliance on dollar-priced energy imports and elevated debt levels contribute to downward pressure on the currency.
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