Yen Slumps to 40-Year Low as Markets Braced for Central Bank Meetings

The Japanese yen has weakened significantly against the US dollar, reaching its lowest level in around 40 years. The USD/JPY pair rose near 164, driven by increased concerns about Japan's finances and the large gap between US and Japanese interest rates.

Middle East tensions have also supported the dollar, while warnings of possible intervention had little effect. Global stock markets fell as investors became more cautious about the large amounts being spent on artificial intelligence and a sharp rise in oil prices hurt market sentiment.

The European Central Bank kept interest rates unchanged but said future increases are still possible. Economic data was limited and mostly close to expectations.