Yen Briefly Falls to 161.80s, Hitting Two-Year Low Zone

2026-06-22

Yen Falls to Two-Year Low Zone

In the foreign exchange market on the 22nd, the yen briefly fell to the 161.80s per dollar. That marked the weakest yen and strongest dollar level in about two years, since July 2024. Expectations for further U.S. rate hikes have strengthened, and the dollar has been bought against a broad range of currencies.

162 in Sight, Intervention Fears Also Rise

With 162 yen, a level not seen since December 1986, coming into view, selling of yen and buying of dollars on psychological thresholds also spread. In the market, the recent low of 161.96 yen set in July 2024 was in focus. At that time, yen carry trades, in which low-interest yen are borrowed to invest in higher-yielding dollars and other assets, were active. The government and the BOJ later stepped into the market that month to buy yen.

Speculation Grows Over Renewed Intervention

Intervention was also carried out on April 30, 2026, and as the yen traded below the prior low of 160.72 yen set just before that move, market caution over another intervention has intensified. Finance Minister Satsuki Katayama said on the 22nd, regarding foreign exchange moves, 'I will refrain from specific comments. We will respond appropriately at any time as needed.'

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