Japanese Yen Hits 40-Year Low at 163.69; Yen-Exposure ETFs Post Negative Returns

According to MoneyToday, on July 27, the Japanese yen fell to its lowest level in 40 years, with the USD/JPY exchange rate climbing to 163.69. The decline in yen value has triggered significant underperformance in yen-exposure ETFs. TIGER Japanese Yen Futures recorded a one-month return of -5.13%, while RISE US S&P 500 Yen Exposure (synthetic) returned just 3.01% year-to-date compared to 11.11% for the non-yen-exposure RISE US S&P 500, a gap of 8.1 percentage points. Japan's economic slowdown—with IMF forecasting 0.6% growth for 2026—and a persistent interest rate differential of 2.5-2.75 percentage points against the U.S. have fueled yen selling pressure.
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