Japan's Yen Plummets to Near 40-Year Low Amid Structural Woes

The Japanese yen has fallen to its weakest level against the US dollar in nearly 40 years, touching fresh lows not seen since.

The decline is attributed to both short-term external shocks and deeper structural problems that have accumulated in Japan's economy over the long term.

Market analysts point out that the yen's weakness has been exacerbated by a wide interest rate differential between the US and Japan, compounded by geopolitical tensions pushing the dollar higher.

The traditional safe-haven appeal of the yen during periods of turmoil has also weakened, as escalating global risks and persistent Middle East tensions have offset any potential gains from increased demand for a safe-haven asset.