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Yen Options Point to Slide Towards 165 Before Tokyo Steps In

Tokyo, 16 July 2026 – Currency options are signalling that the Japanese yen may weaken towards 165 against the US dollar before authorities intervene decisively, as traders test how much depreciation Tokyo is prepared to tolerate.

The yen has been trading near 162 per dollar, close to its weakest level in about four decades, after persistent pressure from wide interest-rate differentials, elevated energy costs and uncertainty surrounding Japan’s fiscal and monetary policy direction.

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Author

  • Kenji Yamamoto is a Senior Fellow at The Ledger Asia, where he explores the critical nexus of Asian international relations, economic development, and environmental sustainability. With extensive experience in cross-border policy analysis, Kenji provides a unique perspective on how diplomatic alliances and green energy transitions drive long-term growth across the Asia-Pacific.

    Previously an advisor for regional development banks, he specializes in sustainable infrastructure and the circular economy’s role in modernizing emerging markets. At The Ledger Asia, Kenji’s deep-dive reports help readers navigate the complex balance between rapid industrialization and the global imperative for climate resilience and corporate responsibility.

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