Dollar strengthens to a four-decade high against the yen, reaching 162.68

The U.S. dollar reached a four-decade high against the Japanese yen on June 30, 2026, hitting an exchange rate of 162.68 JPY per USD. This marked the strongest level for the dollar against the yen since 1986, driven by a widening interest rate differential between the U.S. and Japan, as well as sustained demand for the dollar as a safe-haven currency. The yen weakened beyond 162 per dollar, raising concerns among Japanese policymakers and prompting speculation about potential government intervention in currency markets.

The depreciation of the yen has been attributed to several factors, including Japan’s gradual policy normalization by the Bank of Japan and the Federal Reserve’s expected rate hikes this year. Additionally, ongoing carry trades and energy supply disruptions due to Japan’s reliance on Middle Eastern oil imports have contributed to the yen’s decline. Over the past month, the Japanese yen has weakened by 1.86%, and it has lost 13.44% of its value against the dollar over the last 12 months.

Market participants remain closely watching for any official response from Japanese authorities, as the yen’s historic slide has sparked unease in Japan and heightened volatility in currency markets.