BOJ Rate Hikes Send Japanese Yen Plummeting to 40-Year Low

The Japanese yen has fallen to its weakest level in nearly 40 years due to expectations of further interest rate hikes by the Bank of Japan (BOJ). According to a Reuters survey, 86% of economists expect the policy rate to rise to 1.25% by the end of the year.

The BOJ is widely expected to keep its policy rate at 1% at its July 31 meeting, but markets are anticipating more aggressive action from the central bank. This has led to a decline in the value of the yen, making it one of the weakest currencies against the US dollar.

Prime Minister Sanae Takaichi has expressed optimism that stronger economic growth could help restore confidence in the yen, but the BOJ's move is seen as a key factor in its current weakness.