On July 22, 2026, the Japanese yen weakened to 163 per US dollar, a level not seen since 1986, according to verified market data. This decline is attributed to ongoing fiscal concerns in Japan and the persistent interest rate gap between the Bank of Japan and the US Federal Reserve.
The yen has been under pressure as the Bank of Japan maintains its ultra-loose monetary policy, while the Fed has kept rates elevated to combat inflation. This divergence has made the dollar more attractive to investors, weighing on the yen.
Japanese officials have expressed concern over the rapid depreciation, which increases import costs and pressures the economy. However, no direct intervention has been confirmed as of today.
