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The Hindu
Japan says ready to act as yen hits 40-year low
Japan's Finance Minister has announced that the government is prepared to take timely action to support the yen, which has fallen to a 40-year low against the dollar. The decline is attributed to ongoing geopolitical tensions and the disparity between U.S. and Japanese interest rates. This situation is pressing, as a weaker yen raises import prices for energy and goods, impacting Japan’s economy. The government is balancing the need for currency support with measures to maintain economic growth, including energy subsidies for consumers.
MonitorConfidence: MediumShort term horizonGeopolitical risk: High
Published 30 Jun 2026, 04:35 UTC1 min read
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Summary
TL;DR
- Yen hits a 40-year low against the dollar.
- Japan's authorities are prepared to intervene in currency markets.
- The drop in yen value influences import costs significantly.
- Tourism has seen a boom due to cheaper costs for foreign visitors.
- Interest rate changes by the Bank of Japan may conflict with government growth strategies.
Interesting facts
- The last time the yen was this low was in 1986.
- Japan spent over $70 billion to support the yen last month.
- A weak yen can drive up costs for resource-poor Japan, impacting energy prices.