Yen Falls to Fresh 40-Year Low Past 162/USD Despite BOJ Hike and Intervention

The yen fell to a fresh roughly 40-year low, breaching 162 per US dollar — the weakest level since December 1986 — despite an estimated $72.5 billion in BOJ/Ministry of Finance FX interventions in late April-May and the June 16 rate hike to 1.00%. The move underscored that persistent yen weakness, and the associated carry-trade-unwind risk to global asset markets, had not been resolved by the rate hike alone.