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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