Yen Slides Past ¥161 to the Dollar, Nearing 40-Year Low

The yen weakened past ¥161 to the dollar on June 19, 2026, its softest level since July 2024 and edging toward the near-40-year low last seen in 1986. The slide came despite the Bank of Japan's rate hike three days earlier, as the persistent gap between US and Japanese interest rates continued to drive capital outflows from yen-denominated assets into higher-yielding dollar investments. Traders increasingly priced in the risk of currency intervention by Japanese authorities.