rki.news | Sources Xinhua
The Japanese yen fell to the lower 162 range in Tokyo on Tuesday, marking its weakest level in nearly 40 years against the U.S. dollar.
The currency earlier touched its lowest point since December 1986 in New York, driven by expectations of continued Federal Reserve rate hikes, before extending losses in Asian markets.
Japanese Finance Minister Satsuki Katayama warned authorities are “always” prepared to respond to excessive currency movements, signalling possible intervention if volatility persists.
In equity markets, Japan’s benchmark Nikkei Stock Average rose 594.21 points, or 0.86 percent, to 70,062.32. The broader Topix index also gained 12.76 points, or 0.32 percent, finishing at 3,994.76.
Stocks tracked overnight Wall Street gains, with the Nikkei briefly surging nearly 1,200 points amid easing geopolitical tensions following reports of a ceasefire understanding between the United States and Iran.
However, gains were later trimmed as profit-taking emerged, while concerns over overheating and yen weakness weighed on sentiment. Analysts noted a weaker yen could increase import costs and pressure corporate earnings, adding uncertainty to Japanese markets.
Overall, currency volatility and global rate expectations continue shaping investor sentiment in Japan.