Tokyo, 2 July 2026 – Traders are increasingly examining worst-case scenarios for the Japanese yen as the currency hovers near four-decade lows, raising concerns that a disorderly slide could force stronger policy action and trigger wider market spillovers.
The yen has weakened to around the 162 to 163 level against the US dollar, placing it near its lowest point since 1986. The decline has intensified scrutiny on Japan’s policymakers, who are facing growing pressure to stabilise the currency without destabilising bond markets, equities or domestic financial conditions.
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