Yen hits 40-year low versus dollar
The Japanese yen has fallen to its lowest level against the dollar since 1986, reaching 161.96 yen per dollar, despite the Japanese central bank's efforts to raise interest rates to 1%, the highest since 1995, in an attempt to combat the currency's decline. The government has intervened in the foreign exchange market with record-breaking amounts, with expectations of maintaining an appropriate monetary policy amid continued forecasts that the Federal Reserve will stick to tightening policies. The yen's weakness increases the profits of Japanese importers, but also raises the costs of importing oil and energy, which impacts prices of goods and services for consumers.
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