Yen Sinks to Historic Lows Amid Fed Rate Hike Speculation

The Japanese yen has been trading at its weakest level in over four decades, hovering around 163.7 per dollar on Tuesday.

This comes as the US dollar remains firm due to speculation that the Federal Reserve could raise interest rates as soon as this week.

Despite expectations of verbal intervention from Japanese authorities, the Bank of Japan is widely expected to leave its policy rate unchanged on Friday while keeping the door open to additional rate hikes.