EL7.AI
ForexMediumUpdated×2•Originally published 30 June 2026•Updated 1 July 2026•
1 min read

Yen sinks to lowest since 1986 above 162 as Fed rate hike bets surge

Golden scale weighing a heavy USD cylinder against a light Yen coin, with maps of Japan and the USA behind.

Key Facts

1The Japanese yen fell to its lowest level in 40 years against the US dollar.

Amid the widening policy gap between the US and Japan, the yen plunged to its lowest level since 1986 against the dollar, breaking above the 162 mark. USD/JPY hit around 162.75, according to news reports, reflecting persistent yen weakness under the pressure of a wide yield differential.

The decline accompanied strong US data: job openings rose to a two-year high in May, per market data. The 10-year Treasury yield jumped as much as 9 bps intraday and closed 4.8 bps higher, while the 2-year yield rose to 4.1702%. Traders raised the probability of a Fed rate hike in September to 67% from 20.5% a month ago, according to calculations.

Traders are eyeing Friday's US holiday as a potential window for Japanese intervention due to thinner liquidity. Markets also await any signal from the Bank of Japan to support the yen, with expectations of continued pressure on the currency unless the monetary policy stance shifts.