Tokyo, 3 August 2026 – Japan is preparing to emphasise coordination with the United States over the weak yen, raising the risk of sharper currency intervention and forcing Asian investors to reconsider positions built around long-running interest-rate differences.
The yen has traded near levels last seen almost four decades ago, with the dollar recently moving beyond ¥163. Prolonged weakness has increased the cost of imported energy and food for Japanese households and companies, while creating politically sensitive pressure on purchasing power. It has also benefited exporters whose overseas revenue converts into more yen.
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