Japanese yen falls to its lowest levels since 1986

The Japanese yen fell against the dollar to its lowest levels since 1986, which reinforces expectations that the Japanese authorities may intervene to support it soon, in an attempt to limit the largest decline in any of the currencies of developed countries.

Media reports stated that the Japanese currency declined yesterday, Wednesday, by 0.6% to 160.62 yen per dollar, which is lower than the previous low levels that prompted Japanese officials to intervene in the exchange market to support the local currency last April.

The yen has lost more than 12% of its value since the beginning of this year, which is raising the prices of Japanese imports, harming the purchasing power of consumers, and causing growing concern among companies.

Japanese Ministry of Finance data issued late last month showed Japan spending a record amount of 9.8 trillion yen ($62.2 billion) within one month to halt the decline of the Japanese currency against the US, which is the largest spending in this context since 2022.