The Japanese yen weakened beyond 162 per dollar on Tuesday, marking its lowest level since December 1986, as widening U.S.-Japan interest rate differentials and escalating Middle East tensions continued to weigh on the currency. Japan's Finance Minister reiterated that authorities stand ready to take appropriate action following the yen's sharp decline. While the Bank of Japan recently raised interest rates to a 31-year high, expectations of further U.S. Federal Reserve tightening have kept pressure on the yen. Investor sentiment was also dampened by weaker-than-expected industrial production data, highlighting the economy's vulnerability to supply chain disruptions and higher energy costs stemming from its reliance on Middle Eastern oil imports.
Powered by Capital Market - Live News