Japanese Yen Plunges to 40-Year Low Ahead of BOJ Rate Decision

The Japanese yen has fallen to its weakest level in nearly 40 years as markets anticipate further interest rate hikes from the Bank of Japan (BOJ).

A Reuters survey found that 86% of economists expect the BOJ's policy rate to rise to 1.25% by year-end, despite being kept at 1% for now.

Prime Minister Sanae Takaichi has stated that stronger economic growth could help restore confidence in the yen, which has been declining due to expectations of further interest rate hikes.