Yen Hits 40-Year Low as BOJ Rate Hikes Loom

The Japanese yen has fallen to its weakest level in nearly 40 years due to expectations of further interest rate hikes from the Bank of Japan (BOJ). Markets anticipate the BOJ will keep its policy rate at 1% at its July 31 meeting, but a significant majority of economists surveyed by Reuters expect rates to rise to 1.25% by the end of the year.

According to Prime Minister Sanae Takaichi, stronger economic growth could help restore confidence in the yen. However, this is yet to be seen as the yen continues to slide against other major currencies.