Weakest Yen Since '86 as BoJ Faces Pressure to Act

The Japanese yen has reached its weakest level against the US dollar in nearly four decades, hitting 163.24 on Wednesday, its lowest point since December 1986.

Finance Minister Satsuki Katayama has vowed to take 'decisive actions as needed' to support the currency, having hinted at possible financial interventions in recent weeks.

A report that the Bank of Japan was considering speeding up interest rate hikes gave the yen a small boost on Thursday, but most economists predict the next increase will come in December.

The gap between BoJ interest rates and those in other major economies is driving investors to borrow yen cheaply and invest elsewhere, leading to capital outflows and downward pressure on the currency.