The Japanese yen just hit a level not seen since the Reagan administration. As of June 30, 2026, the currency had weakened to roughly 162 yen per US dollar, its lowest point since December 1986.
Finance Minister Satsuki Katayama has signaled that authorities stand ready to take what she called “appropriate action” as necessary.
What got us here
The yen’s slide is not a mystery. It is the predictable result of a persistent gap between US and Japanese interest rates. The US Federal Reserve has kept rates elevated, while the Bank of Japan has moved with its characteristic caution. Capital follows yield, and for years, that yield has pointed away from yen-denominated assets.
Japan has already shown it is willing to act. Between late April and late May 2026, Japanese authorities spent approximately ¥11.7 trillion, roughly $73 billion, on market intervention to prop up the yen. That is one of the largest currency defense operations in modern history, and it still could not stop the slide below 162.
